The "fair market value" of a property is the amount of money a buyer would pay for it on the open market without being forced to do so. It is the amount paid and received between two people who are not related or affiliated in any way that would influence their behavior.


These are questions that the above text answers:

1. What is the definition of "fair market value" in real estate?
2. How is the fair market value of a property determined?
3. What factors influence the fair market value of a property?
4. Who are the parties involved in determining the fair market value of a property?
5. What is the significance of the fair market value in real estate transactions?
6. How does the fair market value differ from the actual sale price of a property?
8. Is the fair market value of a property fixed or can it change over time?
9. Are there any legal requirements or regulations regarding the determination of fair market value in real estate?
10. How does the fair market value affect property taxes and assessments?

The "replacement cost" of a property can be estimated using the "comparative method", which uses a costing service to provide an approximate price based on the quality and location of the property.


These are questions that the above text answers:

1. How can the "replacement cost" of a property be estimated?
2. What is the "comparative method" used for in real estate?
3. What does the "comparative method" rely on to estimate the replacement cost of a property?
4. What factors are considered when estimating the replacement cost of a property using the comparative method?
5. What is the purpose of using a costing service in the comparative method?
6. How does the comparative method determine the approximate price of a property?
7. What role does the quality of a property play in estimating its replacement cost using the comparative method?
8. How does the location of a property affect its estimated replacement cost using the comparative method?
9. What is the benefit of estimating the replacement cost of a property using the comparative method?

The "comparative method" is the most common way to determine the value of an undeveloped piece of land or a property that hasn't been built on yet.


These are questions that the above text answers:

1. What is the most common method used to determine the value of undeveloped land or properties that haven't been built on yet?
2. How is the value of an undeveloped piece of land or property determined using the comparative method?
3. What is the purpose of using the comparative method in property valuation?
4. In what situations is the comparative method typically used in real estate?
5. What are some other methods used to evaluate the value of unbuilt properties?
7. What factors are considered when using the comparative method to determine the value of undeveloped land or properties?
8. How does the comparative method differ from other valuation methods in real estate?
9. Are there any limitations or drawbacks to using the comparative method in property valuation?
10. Can the comparative method be used to determine the value of developed properties as well?

The "sales comparison approach" is the most popular way to figure out the value of raw land since it doesn't involve calculating the cost of any improvements or the income the land produces.


These are questions that the above text answers:

1. What is the most popular approach for determining the value of raw land?
2. Why is the sales comparison approach preferred for valuing raw land?
3. What factors are not considered when using the sales comparison approach for valuing raw land?
4. What are the benefits of using the sales comparison approach for valuing raw land?
5. What does the sales comparison approach for valuing raw land not involve?
6. What are the limitations of the sales comparison approach for valuing raw land?
7. What are the alternatives to the sales comparison approach for valuing raw land?
8. How does the sales comparison approach differ from other methods of valuing raw land?
9. What are the key considerations when using the sales comparison approach for valuing raw land?
10. How does the sales comparison approach simplify the valuation process for raw land?

An appraiser's first step when assessing vacant land is to decide its "highest and best use". This is necessary before they can figure out which properties to compare it to.


These are questions that the above text answers:

1. What is the first step an appraiser takes when assessing vacant land?
2. Why is it important for an appraiser to determine the "highest and best use" of vacant land?
3. What information does an appraiser need to determine the "highest and best use" of vacant land?
4. How does determining the "highest and best use" of vacant land help an appraiser in comparing properties?
5. What factors does an appraiser consider when deciding the "highest and best use" of vacant land?
6. How does the concept of "highest and best use" impact the valuation of vacant land?
7. What role does the appraiser play in identifying the "highest and best use" of vacant land?
8. Can an appraiser assess the value of vacant land without determining its "highest and best use"?
9. Are there any legal requirements for appraisers to determine the "highest and best use" of vacant land?
10. How does the determination of "highest and best use" affect the overall appraisal process for vacant land?

If the "depth" of a property decreases, it will likely make the "price per square foot" higher. For example, a residential lot that is 60 feet wide and 200 feet deep (12,000 square feet total) might be worth $30 per square foot. If the depth decreases by 50 feet, the lot would still be worth $360,000 but the price per square foot would go up to $40.


These are questions that the above text answers:

1. What is the impact of decreasing property depth on the price per square foot?
2. How does a decrease in property depth affect the value of a residential lot?
3. Can the price per square foot increase if the depth of a property decreases?
4. What is the value of a residential lot with a depth of 200 feet and a width of 60 feet?
5. How much would a residential lot be worth if its depth decreased by 50 feet?
6. What is the total square footage of a residential lot with a depth of 200 feet and a width of 60 feet?
7. How does the price per square foot change when the depth of a property decreases by 50 feet?
8. Does the value of a property change if its depth decreases?
9. How does the decrease in property depth affect the overall value of a lot?

When considering the value of a property, an appraiser looks at the "entire property" and its "immediate area," such as its location, nearby schools, and other factors that could influence its value.


These are questions that the above text answers:

1. What factors does an appraiser consider when evaluating the value of a property?
2. How does the location of a property impact its value, according to an appraiser?
3. What is the significance of the "immediate area" when appraising a property?
4. Besides location, what other factors can influence the value of a property?
5. What role does nearby schools play in determining the value of a property?
6. Why is it important for an appraiser to consider the entire property when assessing its value?
7. What are some of the key considerations an appraiser takes into account when evaluating a property?
8. How does an appraiser's perspective differ from other perspectives when assessing property values?
9. In what ways can the value of a property be influenced by external factors?
10. What is the primary focus of an appraiser when determining the value of a property?

The value of a property can go up due to an increase in the population in the area, which is known as "appreciation". This increase in value is not something that the owner has to work for or spend money on, so it is called an "unearned incremental increase".


These are questions that the above text answers:

1. What is the term used to describe the increase in value of a property due to an increase in population in the area?
2. How is the increase in value of a property, resulting from an increase in population, referred to?
3. What is the term used to describe the increase in value of a property that the owner does not have to work for or spend money on?
4. What is the term used to describe the increase in value of a property that is not earned by the owner?
5. What can cause the value of a property to go up?
6. What is the relationship between population increase and property value?
7. How is the increase in property value, resulting from population increase, categorized?
8. What is the term used to describe the increase in property value that is not directly earned by the owner?
9. What is the term used to describe the increase in property value that is not a result of the owner's efforts or expenses?
10. What is the term used to describe the unearned increase in property value due to population growth?

The "reproduction cost" of a property is the cost today to build an exact copy of it. The "replacement cost" is the cost today to build something similar that would have the same purpose, but using modern materials and methods.


These are questions that the above text answers:

1. What is the difference between reproduction cost and replacement cost of a property?
2. How is reproduction cost of a property defined?
3. How is replacement cost of a property defined?
4. What does reproduction cost refer to in real estate?
5. What does replacement cost refer to in real estate?
6. How is reproduction cost calculated for a property?
7. How is replacement cost calculated for a property?
8. What factors are considered when determining reproduction cost?
9. What factors are considered when determining replacement cost?
10. Why is it important to understand the difference between reproduction and replacement cost in real estate?

The "sales comparison" approach is usually the best way to determine the value of a property when there are similar properties that have been sold recently. However, when it comes to "unimproved property" (property that doesn't have any existing improvements), the "cost approach" cannot be used as there is nothing to compare the value to.


These are questions that the above text answers:

1. What is the "sales comparison" approach used for in real estate valuation?
2. What is the "cost approach" used for in real estate valuation?
3. When is the "sales comparison" approach typically used to determine property value?
4. What type of property is the "cost approach" not suitable for?
5. What is the "cost approach" used to determine the value of?
6. What is the best way to determine the value of unimproved property?
7. Why can't the "cost approach" be used for unimproved property?
8. What is the limitation of the "cost approach" when it comes to unimproved property?
9. What is the alternative approach to determine the value of unimproved property?

The way land is valued for appraisals depends on its size and use. Generally, land is priced by the "square foot", except for rural properties. If the land is on a beach, golf course, or is intended for commercial use, it may be valued based on the "front foot comparison", which may give it the highest possible value.


These are questions that the above text answers:

1. How is land typically priced for appraisals?
2. What factors determine the valuation of land?
3. What is the pricing unit used for land in general?
4. Are rural properties priced differently than other types of land?
5. In what circumstances might land be valued based on "front foot comparison"?
6. What types of properties may be valued based on "front foot comparison"?
7. How does valuing land based on "front foot comparison" affect its value?
8. Are there any exceptions to valuing land by the square foot?
9. How does the intended use of land impact its valuation?