David Saks: June 2014

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 2752

#2752

An appraiser was contacted an asked to appraise a home.

There have been quite a few sales in the area due to the recent economic climate and the lower of prices.

The best type of appraisal for the appraiser to use in this situation is an income capitalization approach to the appraisal.

Is this true or false ?

Please take your time. The solution is posted below the wildlife photo.

wildlife

A. False

The type of appraisal method best served in this example is the 'sales comparison approach' which is also a market data approach or a comparable sales approach which will estimate the market value of a home by comparing the home to recent sales of homes which are comparable to our subject home in size, amenity, and equality to other recently sold properties within the same area.

An income capitalization approach, or the income approach, is for the purpose of appraising real estate which produces income.

Essentially two methods are used in the income approach, and they are the 'gross income multiplier' and the 'income capitalization method', which we'll look at later.




David Saks



Time&Temp Memphis

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Comment balloon 0 commentsDavid Saks • June 09 2014 08:39AM
Real Estate Practice : Lesson 2752
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#2752 An appraiser was contacted an asked to appraise a home. There have been quite a few sales in the area due to the recent economic climate and the lower of prices. The best type of appraisal for the appraiser to use in this… more
Real Estate Practice : Lesson 2751
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#2751 If money is held before the acceptance of an offer of a sales contract for the purchase of a home, the money belongs to both the seller and the buyer. Is this true or false Remember to take your time. The solution is… more
ActiveRain Expired Listings Can Spell TROUBLE
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This was my original post But since it was shuffled away in the blog roll here it is again for your consideration! ======================== Do you have withdrawn, inactive and expired listings &… more
Real Estate Practice : Lesson 2750
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#2750 Sally defaulted on her mortgage and subsequently missed a few payments in the process. He lender had to begin the foreclosure process. Before the foreclosure slae took place Sally paid back the entire amount and cured the… more
Real Estate Practice : Lesson 2749
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#2748 Money may be given to a broker to hold in trust or escrow for a buyer to pay for a home inspection. Is this true or false Take your time. The solution is posted below the wildlife photo A. This is true. … more
Real Estate Practice : Lesson 2748
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#2748 Money may be given to a broker to hold in trust or escrow for a buyer to pay for a home inspection. Is this true or false Take your time. The solution is posted below the wildlife photo A. This is true. … more
Real Estate Practice : Lesson 2747
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#2747 If the commission rate a listing broker has with a seller becomes a source of contention between the seller and the broker, the broker can change the commission structure at will without the consent of the selller, but the seller has the… more
Real Estate Practice : Lesson 2746
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#2746 Any time a seller or buyer wants to create an agency relationship with a broker all the principal has to do is agree to the agency relationship orally. It actually doesn't have to be in writing. Is this true or false &… more
Real Estate Practice : Lesson 2745
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#2745 A house sits on top of a hill not far from the city landfill. You can see the dump trucks in the destance, but a nice forest is nearby. The agent says to the buyer, "This is absolutely one of the most beautiful views… more
Real Estate Practice : Lesson 2744
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#2744 Any time a broker takes a listing the seller has given the broker the right to enter into a firm contract on behalf of the seller and decide the selling price if the seller can't decide. Is this fact true or false Take your… more