1. Chapter 14 Valuation and Appraisal1 New Jersey Real Estate for Salespersons and Brokers By Marcia Darvin Spada Thomson/South-Western Copyright, 2006

2. Chapter 14 Valuation and Appraisal2 Chapter 14 Valuation and Appraisal

3. Chapter 14 Valuation and Appraisal3 Chapter 14 Key Terms  Anticipation  Appraisal  Comparative market analysis  Contribution  Cost approach  Depreciation  Evaluation  Functional obsolescence  Highest and best use  Income approach  Market value  Sales comparison approach  Substitution

4. Chapter 14 Valuation and Appraisal4 Characteristics of Real Property Transferability Effective Demand Utility Scarcity

5. Chapter 14 Valuation and Appraisal5 Factor Affecting Value Economic SocialGovernmental Physical

6. Chapter 14 Valuation and Appraisal6 Economic Influences on Value  Anticipation  Change  Substitution  Use- highest and best  Conformity  Increasing/ diminishing returns  Plottage  Contribution  Competition  Depreciation  Age

7. Chapter 14 Valuation and Appraisal7 Types of Value $ Market $ Investment $ Insurance $ Value in use $ Assessed $ Mortgage Most appraisals estimate market value

8. Chapter 14 Valuation and Appraisal8 Residential Market Analysis Residential Market Analysis Assets/ drawbacks Terms Market value range Competing properties Expired properties Buyer Appeal Market Position

9. Chapter 14 Valuation and Appraisal9 Appraisal Approaches to Value Appraisal unbiased estimate of value as of a certain date  Sales comparison  Cost  Income

10. Chapter 14 Valuation and Appraisal10 Appraisal Reporting Narrative Report Uniform Residential Appraisal Report (URAR) Reconciliation

11. Chapter 14 Valuation and Appraisal11 NJ State Real Estate Appraiser Licensure/Certification NJ trainee appraiser NJ state-licensed residential appraiser NJ certified residential real estate appraiser NJ certified general appraiser A trainee appraiser requires 75 hours of qualifying education