REAL ESTATE APPRAISAL
What could cause market value to differ from the price paid for a property or the cost of replacing the property?
There can be various reasons for cost to differ from the cost of replacing the property:
REAL ESTATE APPRAISAL What could cause market value to differ from the price paid for a...
What is the primary role of the real estate appraisal? What are the currently accepted four methodologies for appraising real estate? What role does market value and agreed contract price play in the process? (CLO 5)
The objective of an appraisal is to: Establish the most probable price that would be paid for property under competitive market conditions O Establish the highest possible price that a property can sell for Establish the market value for a property if the property is put to its highest and best us Establish the market value for a property's land without any structures (such as a house)
Investor goals and motivations differ in the real estate market. Discuss the advantages and disadvantages of investing in real estate, especially in today's market. Review local listings, newspaper advertisements and articles. Then describe the condition (buyer’s market, seller’s market, etc.) for your local market. In which direction is this market moving? How long do you think it will be before your local market changes, and why do you think so?
8. Define comparative advantage in a real estate context. How might this be used to increase investment performance? 9. Explain the real estate market cycle as related to new construction, bank lending risk tolerance, and rental rates. 10. What stage of the real estate market cycle is your home market in currently? Does the stage differ by property type and if so why? Who could you ask to determine this information?
The following information applies to the questions displayed below.] Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,045,000. Harding paid $210,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $222,000; Building, $660,000 and Equipment $438,000. (Round percentages to two decimal places: ie ,054-5%). 13. 17.00 points value: What value will be recorded for the building? O 105,000 O 385,000 O...
[The following information applies to the questions displayed below.] Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,045,000. Harding paid $210,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $222,000; Building, $660,000 and Equipment, $438,000. (Round percentages to two decimal places: ie ,054 5%). 13. 1700 points What value will be recorded for the building? O 105,000 O 385,000 O...
Nasim paid the following taxes this year: Real estate taxes on rental property she owns $6,500 Real estate taxes on her own residence 5,200 Federal income taxes 12,000 State income taxes 7,500 For 2018, what amount of taxes (SALT) can Nasim deduct as an itemized deduction on her tax return? A) $5,200 B) $7,500 C) $10,000 D) $19,200 2. Aki's records contain the following information: 1. Donated stock having a fair market value of $4,000 to a qualified charitable organization....
Hugh, a self-employed individual, paid the following amounts during the year: Real estate tax on Iowa residence $3,800 State income tax 1,700 Real estate taxes on a vacation home 2,100 Gift tax paid on gift to daughter 1,200 State sales taxes 1,750 State occupational license fee 300 Property tax on value of his automobile (used 100% for business) 475 What is the maximum amount Hugh can claim as taxes in itemizing deductions from...
During 2018, Noriko paid the following taxes related to her income: Real estate property taxes on residence (paid from escrow account) $1,800 State personal property tax on her automobile (based on value) $600 Property taxes on land held for long-term appreciation $400 What amount can Noriko deduct as property taxes in calculating itemized deductions, assuming she was under the $10,000 limit for state and local taxes, for 2018? a. $400 b. $1,000 c. $2,400 d. $2,800
Which of the following are included in the tax basis of a real estate property? (I = included; N= not included): Amounts paid to acquire the property. Amounts borrowed to construct property. The cost of labor paid to contractors to construct property. The value of other property given to the seller in exchange for the property. Bidding fees related to acquiring the property. Amounts paid to third party appraiser to determine the value of the property.