national interactive study group…contact information bobra tahan and howard harris both have...
TRANSCRIPT
UNIT 6:
BOBRA TAHAN
HOWARD HARRIS
NATIONAL INTERACTIVE STUDY GROUP
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Study Group Information
Please refer to your dashboard for the following:
Link to calendar of discussion topics
Links to discussion questions
Use this button on the Learning Management System tab to access your dashboard:
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Setting up the room3
Setting up the room4
Contact Information
Bobra Tahan and Howard Harris both have access to this account:
Please include the STATE where you will be taking your exam anytime you reach out to us so we can
find the best resources for you.
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Unit 6:
TOPICS TO BE DISCUSSED:
Your Questions
Appraisal
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COST-PRICE-VALUE
COST= HISTORY
PRICE= WHAT YOU ARE WILLING TO PAY
VALUE= WHAT SOMETHING IS WORTH
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DATE OF AN APPRAISAL
APPRAISAL= DEFENDIBLE OPINION
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PAST PRESENT FUTURE
5 YEARS AGO TODAY 2 YEAR PROJECT
QUESTION
In addition to being licensed an appraiser may have additional designations, such as MAI or SRA.
True
False
MAI=Member of Appraisal Institute
SRA=Senior Residential Appraisal
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QUESTION
An appraisal would be required for all of the following EXCEPT:
A. A conventional loan with a 60% LTV
B. An FHA loan
C. A home equity line of credit
D. A seller carry back loan
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QUESTION
The most probable price a property will bring at sale is the:
A. Market price
B. Assessed value
C. Market value
D. Ad valorem price
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QUESTION
During a recent recession property values went down and building stopped. In Anytown the rents and sales prices have now increased rapidly in the last year. The best appraisal principle to explain what is occurring would be:
A. Contribution
B. Progression
C. Supply and demand
D. Highest and best use
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QUESTION
The essential elements of value are:
A. PITT
B. DUST
C. PETE
D. ECOA
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SALES COMPARISON-MARKET APPROACH
1. Property evaluating – “subject”
2. Similar properties recently sold – “comparables”
3. Adjustments made to comparables
4. Comp better “–”, comp worse “+”
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Subject Property
3 bedrooms2 bathrooms
Comp 14 bedrooms3 bathrooms
Comp 22 bedrooms2 bathrooms
EXAMPLE19
$
$
QUESTION
The best approach to value a single family two story home is the:
A. Cost approach
B. Income approach
C. Sales comparison approach
D. Price per square foot
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– Depreciation
Cost NewReproduction
COST APPROACH
Replacement
Physical Obsolescence
Functional Obsolescence
Economic Obsolescence
+ Land Value
= VALUE
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QUESTION
The best approach to value a church is the:
A. Cost approach
B. Income approach
C. Sales comparison approach
D. Contributory value approach
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INCOME APPROACH
Can be used for any property that generates income.
Appraiser determines
Rate is the capitalization rate or rate of return the investor wants.
You should be able to do this formula in all its derivations I=RXV OR R= I÷V OR V= I÷R
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I
R V
FINDING NET OPERATING INCOME
Potential gross income (PGI)a)Contract rent
b)Market rent
- Vacancy and collection losses (percent of potential gross)
Effective gross income (EGI)
- Operating expenses (do not include debt service)
Net operating income (NOI)
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INCOME APPROACH EXAMPLE
RATE INCOME VALUE
12% $10,000 $83,000
10% $10,000 $100,000
8% $10,000 $125,000
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QUESTION
The best approach to value for an office or apartment building is the:
A. Cost approach
B. Income approach
C. Sales comparison approach
D. Price per square foot
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QUESTION
A big house surrounded by smaller houses will suffer from:
A. Progression
B. Regression
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QUESTION24
A small house surrounded by larger houses may increase in value due to
A. Progression
B. Regression
QUESTION25
A highest and best use description would appear in both the CMA and appraisal.
True
False
QUESTION26
The principle of substitution underlies all approaches to value.
True
False
CONTACT INFORMATION27
Any questions I missed or that you still have?
Remember if you think of something after class you can reach both Bobra Tahan and Howard Harris at: