FRECI_15-3 - 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 3 Real Estate Appraisal Copyright, 2005 2 Lecture Preview What will you learn from this lecture? Discuss the “cost-depreciation approach” to property valuation Identify the types of properties best suited to this approach Identify three methods of cost-estimating Discuss different categories and types of depreciation Copyright, 2005 3 Vocabulary Terms Cost-depreciation approach Curable Depreciation Economic life Incurable Copyright, 2005 4 Three Approaches to Value 1. Sales comparison approach 2. Cost-depreciation approach 3. Income approach Copyright, 2005 5 2. Cost-Depreciation Approach Non-income producing properties Unique properties (geodesic dome home) Special-use properties (churches, jails) Properties without good comparables Based on the Principle of Substitution Useful for Copyright, 2005 6 Steps in Cost Approach 1. Determine the cost to reproduce the building today 2. Calculate the accrued depreciation 3. Find the land value (using the
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This note was uploaded on 05/21/2011 for the course FREC 1000 taught by Professor Stallone during the Spring '08 term at University of Florida.

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FRECI_15-3 - Lecture Preview Florida Real Estate Commission...

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