Idaho Real Estate School: MOD 2 (2023/2024) Rated A

Idaho Real Estate School: MOD 2 (2023/2024) Rated A Appraisal Estimate or opinion of value based on the supportable evidence and approved methods. An appraiser is an independent person trained to provide an unbiased estimate of value. The appraisal value is the appraiser's opinion of that property's worth. Appraiser an independent person trained to provide an unbiased estimate of value. CMA (comparable market analysis) An analysis of probable value of real estate done by an individual other than an appraiser. Any real estate licensee may do a market analysis if they have a reasonable expectation to either list or sell the property. BPO (broker price opinion) An opinion of value of real estate done by a licensee with a broker level license. They may even charge for the opinion of probable market value. Elements of value 1. Demand with purchasing power 2. Utility 3. Scarcity D. Transferability Market value An estimate of value based on analysis of data. It may not reflect the cost. The most probable price a property should bring in if payment is made in cash and the buyer and the seller unrelated, well informed, and acting without pressure. Price aka market price The amount for which the property actually sold. Cost The amount of money used to construct improvement + the value of the land. T T or F: Market value and market price should be equal? 1. Demand 2. Utility 3. Scarcity 4. Transferability DUST What are the four elements of value? (DUST) Demand (Element of value) The property must be needed or wanted by someone who has the purchasing power to obtain it. Utility (Element of value) The property must have a useful purpose or satisfy a need. The more useful the property is the more likely someone will pay for it. Scarcity (Element of value) The type of property must have some degree of rareness. This refers to the supply of similar property in relation to the demand for it. Even if it has utility, it will not have value with overabundant. Transferability (Element of value) The ability to transfer title to a property to someone else. Ability to will, lease, give away or sell the property. Anticipation