Session 2 – Real Estate Appraisal Principles and Procedures

Session 2  – Real Estate Appraisal Principles and Procedures

Hello and welcome to week two of real estate
principles and procedures this is your instrutor
Matt Boxberger. This week and next we’ll be covering appraisal math and statistics. I know
this may be old hat to some of you, while others may need a refresher, so what I’ll start
with is just a couple of tips to watch out for on tests when it involves math
and the questions then you can skip ahead or
skip most of the lecture if its familiar to you Hopefully that will prove to be one of our
advantages we have with the online self paced
learning environment here that you can skip over that which you’re already well familiar
with, go back and spend more time or
additional time on the areas that aren’t as familiar, or that you need
to a little more practice and now some books and in fact earlier editions of
the textbook we’re using now put the math towards the back of the book as kind of an
appendix or optional topic which is fine for folks that do know the math
pretty well but if they don’t, or you don’t of that can slow you down as it’s being used or
talked about within the actual appraisal topics
we’ll cover. So I feel like this is a good way to do it, especially where we’ve got the flexibility
here. Now, you will see our discussion topic this week
will be a continuation of what we started in the
first week with appraisal ethics and we’ll be asking you to discuss an instance you find
where are an appraiser of violated the ethics requirements or the law in performing an appraisal and and have some
discussion there and I assume that’s gonna be
more interesting and more desirable than been talking about the calculating the area
of a lot of land com so without will go to the next slide your and all start with just a short discussion and of what map what kind of math do we need to use
an appraisal practice and Y, as you can see
those scrolling onto the screen your server the most common mathematical calculations or for
the JOS month’s meeting we had just from the price of copper bowl sale to
the subject or we adjust either one of them to the market so that were able to determine and
apples for apples comparison if you will and sold those adjustments can either be a
fixed dollar amounts late for example the value
of the swimming pool which in some markets and sometime may be worth $20,000 all else
being equal between two homes and so you’d want to apply that $20,000 to the
copper bowl to make it the same as the subject
and Justin aside your as will get into in a lot more detail when we talk about the sales
comparison approach I gets out of counter intuitive or the opposite of what you
might initially thinks a teacher praising a home
with a swimming pool one of your comparable sales and she found that sold recently did not
have a pool it was in fury are two of the subject what she would do is add plus $20,000 to the
price of that copper bowl sale to bring it up two
were BU quote went to the subject and if things were reversed in your subject property that
reducing the appraisal on did not have a pool a recent sale was very similar except it did have a
pool it was superior to the subject property you would
deduct for that superiority would deduct $20,000 in cuts which are steady the markets as the the
buyers and Sellers of reaction is too low a pool now a pool was probably me work the same
whether the homely use selling for 300,000 were
400,000 votes in the same neighborhood other kinds of adjustments or more closely related to the basic price the
house and then applied as a percentage so the
value difference between two homes that were pretty similar bets A sat on
either side of the school district boundary where
there is a definite difference and as more desirability on one side IUU your study might
show that to for similar homes there’s a 10% difference in the price on the more
desirable school district side and so then your $300,000 home you would adjust by $30,400
thousand home to 40,000 sol those are the two primarily of methods of adjustments and
attitudes in the bottom slide in the next part of this does to us that the stakes will talk about
next week with statistics we model the market we look at a bunch of
information and say

5 thoughts on “Session 2 – Real Estate Appraisal Principles and Procedures

  1. Is there Session 1 ?

  2. This brings me back to my algebra days.

  3. Question. Moving Forward are we rounding? If 30% of $300,000 is 90k how are you getting $231k I understand change going backwards and getting $210k

  4. I was all excited until the math part. No thank you. I can't do math.

  5. Great video, please make more

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