LAVC - RE 9 - Appraisal SLO (1R).doc

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Los Angeles City College *

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Course

01

Subject

Industrial Engineering

Date

Jan 9, 2024

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pdf

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4

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Name:____________________ REAL ESTATE APPRAISAL – REAL ES 009 STUDENT LEARNING OUTCOME (SLO) – 50 Points A. What are the three approaches to value? (3 points each) 1. 2. 3. B. Which of the three approaches would you usually use to appraise each type of property? ( 1 point each) 1. House - 2. School – 3. Vacant Land – 4. Apartment House – 5. Office Building – 6. Train station - 7. Residential condominium – 8. Athletic stadium – 1
9. Retail Shopping Center - C. Define each of the following and give an example of each: (3 points each) 1. What is effective age? 2. What is Functional Obsolescence? 3. What is Physical Obsolescence? 4. What is Reproduction cost? 5. What is a Rate of Return? 2
6. What is Income Capitalization? D. Using the Sales Comparison Approach to Value please adjust the Comps value using the following data: I suggest you re-read the CH 9 Lecture Notes before you start this problem. The subject property (the one you are appraising) is a medium quality, 25 year old, 3 bedroom Single Family Residence with a two car garage. The appraiser has identified a comparable property to be used in his opinion of value. It has the same square footage and room count in the same neighborhood that is a recent sale. How would the appraiser adjust the Comparable property making the following cost adjustments per the appraisers Opinion? Adjustments to be made as per appraiser’s Opinion: Location Difference per appraisers opinion $10,000 ( + or - ) Lot Size Difference $15,000 ( + or - ) Overall Condition Difference $ 5,000 ( + or - ) Comparable Property Data: Enter Amount of each Adjustment below (You must decide if you add or subtract the amount of the adjustment) (3.5 points each) 3
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Price Paid for Comparable Property $500,000 Location Nicer location than subject property ___________ Lot Size Smaller than subject property ___________ Overall Condition Better than subject property ___________ What is the Adjusted Price?(Adjust the Price Paid) ________ 4