Unit 16 of 19

Real estate appraisal

The appraisal process and the sales comparison, cost, and income approaches to value.

  1. 1
    Who may appraise in Florida
    Who may issue an appraisal report in Florida under Chapter 475 Part II, what a sales associate may do instead (CMAs, price opinions, paid valuation services), and what USPAP is.
    +50 XP
  2. 2
    Value, the principles of value, and the appraisal process
    The difference between value, price, and cost; the federal market value definition; the four elements of value; the main appraisal principles from highest and best use to regression and progression; and the steps of the appraisal process.
    +50 XP
  3. 3
    Sales comparison approach
    How appraisers value a home from recent comparable sales, why adjustments are always made to the comparable and never to the subject, and which direction each adjustment goes.
    +50 XP
  4. 4
    Cost approach and depreciation
    How the cost approach values land separately, estimates reproduction or replacement cost, and subtracts accrued depreciation, including physical deterioration, functional and external obsolescence, curable versus incurable, and straight-line math.
    +50 XP
  5. 5
    Income approach and reconciliation
    How to build net operating income from potential gross income, use a capitalization rate to find value, apply gross rent and gross income multipliers, and reconcile the three approaches into one opinion of value.
    +50 XP

Practice questions

Check yourself with exam-style questions. Each one explains the answer as soon as you pick.

Practice Unit 16