Learning Objectives
– Describe the basis of the direct comparison approach of appraisal
– Define and discuss the terms “recent” and “similar” in the context of appraisal
– Explain the effect on value of different building and lot characteristics, and conditions of the sale
– Explain how and why adjustments are made to comparable properties
– Apply the comparative approach of appraisal using the rating grid
– Give examples of properties the comparative approach is most useful in appraising
– Discuss the limitations of the comparative approach of appraisal
– Describe how the cost approach of appraisal estimates value
– Illustrate where cost does, and does not, equal market value
– Explain how the cost of constructing improvements are represented and estimated
– Discuss the different categories of depreciation and provide examples of each
– Apply the cost approach of appraisal
– Give examples of properties the cost approach is most useful in appraising
– Discuss the limitations of the cost approach of appraisal
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