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Real Estate Appraisal Reading: Ch. 18 Jacobus 1. Key Terms a. Appraisal b. Market value c. What appraisals don't do 2. Valuation Process a. Uniform Statndard of Professional Appraisal Practice b. Guidelines 3. Value a. Four characteristics of value: DUST i. Demand ii. Utility iii. Scarcity iv. Transferability b. Market Value = Fair Market Value (FMV) i. Most Probable price ii. Sale will be consumated c. Economic principles affecting value 4. Approaches to Valuation (Market, Cost and Income) a. Sales Comparables (comps) b. Cost c. Income Approach. 5. Reporting methods a. Letter Report. b. Form Report. c. Narrative. 6. Analysis a. Types of analysis i. Cash flow ii. Gross Rent Multiplier iii. Competitive Market Analysis iv. Feasibility b. Guidelines 7. Other "values" 8. Buyer's Market versus Seller's Market 9. Regulation and Professional qualifications: a. FIRREA. i. Appraisal standards ii. Appraiser qualifications b. State Licensure and/or certification