FRECI_15-1 - Lecture Preview Florida Real Estate Commission...

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1 Florida Real Estate Commission Course I Pre-Licensing Course for Sales Associates Session 15 – Lecture 1 Real Estate Appraisal Copyright, 2005 2 Lecture Preview What will you learn from this lecture? The types of appraisal services a licensee may perform The difference between price, cost and value Discuss the four characteristics of value Examine “Highest and Best Use” Copyright, 2005 3 Vocabulary Terms Appraisal Assemblage Comparative market analysis (CMA) Federally related transaction Highest and best use Over- improvements Plottage Principle of substitution Progression Regression Situs 4 What is an Appraisal ? “scientific” methods (mathematical computations) and the appraiser’s personal judgment The process of determining the value of a specific property, for a particular purpose, at a given point in time Appraising is the “art” of finding a property’s value It includes Copyright, 2005 5 Regulation of Appraising it is not for a federally related transaction compensation is not based on the value it adheres to the Uniform Standards of Professional Appraisal Practices (USPAP) it is not referred to as “certified” it is not for the purpose of obtaining a listing (must be called a CMA) Real estate licensees may perform an appraisal IF : Copyright, 2005 6 The Comparative Market Analysis (CMA) Most commonly used to determine a listing price Utilizes the Comparable Sales method Exempt from USPAP guidelines May charge a fee (but usually complimentary) Not referred to as an appraisal!
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