Finance, Appraisal & Math·Appraisal

Chapter 3: Property Value and Appraisal (~7–8%)

3.1 — Value Concepts and Appraisal Methods

Weight: ~7–8% | Study time: 90 min

Market value vs. market price vs. cost; value principles (supply/demand, substitution, conformity, regression/progression, contribution, anticipation, change, highest and best use); three approaches: sales comparison (CBS adjustment rule), cost (land + improvements − depreciation; physical, functional, external obsolescence; straight-line depreciation), income (NOI, cap rate, IRV triangle, GRM); BPO vs. appraisal; millage rate calculations.

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