REAL ESTATE APPRAISAL What could cause market value to differ from the price paid for a...
REAL ESTATE APPRAISAL
What could cause market value to differ from the price paid for a property or the cost of replacing the property?
Homework Answers
There can be various reasons for cost to differ from the cost of replacing the property:
- The location may have been better of or worse off due to a new construction or government passing a new law.
- The residual value of land may differ when put to different uses.
- A general inflation or rise in properties surrounding may lead to increase or a similar decrease may lead to decrease.
- A new highway or other facilities such as a market opening nearby may also increase prices.
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REAL ESTATE APPRAISAL
What could cause market value to differ from the price paid for
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[The following information applies to the questions displayed below.] Harding Corporation acquired real estate that contained...
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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)
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...
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.
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