FBHFöp'	┴                               █▀▀▀▀▀▀▀▀▀▀▀▀▀█
                               █  VALUATION  █
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  WHAT IS AN APPRAISAL? ▄
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1An appraisal is an estimate or opinion of value. -
  WHAT IS AN VALUE? ▄
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ÅValue has been defined as  "the present worth of future benefits."  In order for anything to have value it must have DUST, as described below: C
Demand - someone must want to possess an item  in order for it to          have value;
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Utility - the ability to satisfy a need or desire; "
Scarcity - a limited supply; and G
Transferability - title must be able to be conveyed to another party.   R	  É  ÷  ░    <  ^''
  TYPES OF VALUE ▄
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value in use - based on the current use of the property =
liquidation value - value based on a forced or "quick sale; @
investment value - seen from the viewpoint of an investor; and I
insurance value - primarily concerned with replacement of improvements. ≈

But, the most common estimate is that of market value, which is defined as the most probable price a property would sell for assuming payment in cash, informed buyers and sellers acting without undue pressure, and a reasonable marketing period.     *  c  á  α'>  BASIC PRINCIPLES OF VALUE  ▄
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1.  Highest and best use - the use that is legally permissible, physically possible, economically feasible, and most profitable. π
2.  Substitution - the maximum value of property is the cost of acquiring a comparable substitute property.  In other words, given a choice of two properties with similar utility a purchaser would buy the one that costs less. Φ
3.  Supply and demand - the value of property will be affected by an increase or decrease in the supply of similar properties.  Generally, increases in supply cause values to go down, while demand increases causes prices to go up. ±
4.  Conformity - this principle sates that a property's maximum value will be achieved when it conforms to surrounding properties.  For example, a contemporary design home in a neighborhood of traditional design homes will have less value.     D  ╞  ⌐  æ
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Now there is help for those who wish to score well on the state real estate exam.  Phil Hardwick, Instructor of Real Estate at Millsaps College and former Administrator of the MS Real Estate Commission, has helped hundreds of applicants pass the state real estate exam.  He has been involved in real estate regulation, education and test development since 1977. 
Your course includes a review of the principles of real estate, a glossary of terms and definitions, practice examinations and a real estate math section.  You can study the material many times without repeating the same questions.   The review is entirely at the learner's own pace. ;
The complete course costs $49.95 and may be obtained from M
CrossKeys, Inc., 1936 Petit Bois, Jackson, MS  39211.  Tel. (601) 981-7412. U
Operators are on duty 9:00 a.m. to 8:00 p.m. CST.  Dealer agreements are available.   ┼  ╓:'
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