REP_OH.18

REP_OH.18 - CM 426 - REP 18 REAL ESTATE APPRAISAL I. WHAT...

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CM 426 -- REP 18 REAL ESTATE APPRAISAL I. WHAT IS AN APPRAISAL? AN UNBIASED ESTIMATE OR OPINION OF VALUE A. WHO RELIES ON APPRAISALS? 1. TAX COLLECTORS 2. MORTGAGE LENDERS 3. INVESTORS 4. BUSINESSES 5. INDIVIDUALS B. HISTORY 1. a. FAULTY APPRAISALS b. OVERVALUED COLLATERAL 2. REACTION OF CONGRESS -- FIRREA IN 1989 -- FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT a. FIRST ATTEMPT AT COMPULSORY APPRAISER REGULATION b. AS OF JANUARY 1, 1993 ALL APPRAISALS FOR FEDERALLY-RELATED TRANSACTIONS MUST BE PERFORMED BY STATE-CERTIFIED APPRAISERS (ANY REAL-ESTATE TRANSACTION IN WHICH A FEDERAL INSTITUTION, A REGULATORY AGENCY OR THE RTC IS ENGAGED) 1) EXEMPTIONS FOR RESIDENTIAL PROPERTY VALUED AT $250,000 OR LESS 2) EXEMPTIONS FOR COMMERCIAL PROPERTY VALUED $1 MILLION OR LESS II. ARE ALL APPRAISALS DONE BY CERTIFIED APPRAISERS?
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A. SALESPERSONS PREPARE LISTINGS BASED ON THEIR KNOWLEDGE OF THE MARKET, PERSONAL BIAS AND/OR CMA 1. COMPETITIVE MARKET ANALYSIS 2. A CMA SHOULD NOT BE REPRESENTED AS AN APPRAISAL B. VALUE OF REAL ESTATE 1. PRESENT WORTH OF FUTURE BENEFITS ARISING FROM OWNERSHIP OF PROPERTY 2. “MOST PROBABLE PRICE THAT A PROPERTY SHOULD BRING IN A FAIR SALE” a. NOT THE AVERAGE OR HIGHEST PRICE b. BUYER AND SELLER MUST BE UNRELATED AND MUST ACT WITHOUT UNDUE PRESSURE c. BOTH MUST BE WELL INFORMED ABOUT PROPERTY’S DEFECTS AND ADVANTAGES d. UNAFFECTED BY SPECIAL FINANCING, TERMS, ETC. C.
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REP_OH.18 - CM 426 - REP 18 REAL ESTATE APPRAISAL I. WHAT...

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