Recognizing shifts in the market is one of the most significant issues facing residential real estate appraisers today. Until recently, many residential appraisers have never seen a significant market downturn in which residential property values and employment in the real estate industry fall. This timely new seminar will discuss the correct use, pitfalls, and procedures used in valuing residential real estate in markets shifting from appreciation to depreciation. In addition, it will focus on the tools necessary to analyze a local market. Although local and national newspapers and local brokerage firms provide statistical analysis indicating a declining market, it is still necessary to provide well-reasoned support for a property value conclusion, decreasing or not. Finally, recognizing, measuring, and adjusting for today’s creative financing plans will be analyzed. Most of these plans involve sellers participating in the plan, and most will have an impact on the price paid, but not the value of the property. Understanding the impact of these concessions on real estate prices is particularly important and is discussed in detail.
Upon completion of the seminar, participants should be able to:
Recognize the “general” sources of market information that may give indications of market trends.
Recognize a declining market in a local market when it occurs.
Measure the losses in value in the local markets.
Apply the measured rate change in the analysis using the cost approach.
Apply the measured rate change in the analysis using the income capitalization approach.
Apply the measured rate change in the analysis using the sales comparison approach.
Recognize current and new creative financing plans for financing of real estate.
Measure the impact on the sale prices of real estate due to these creative financing plans.