MMP111 Lecture Notes - Lecture 6: Fee Simple
15 Aug 2018
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Document Summary
Property valuation is the art and science of estimating the value of a particular property for a specific purpose at a point in time, taking into account features of property and economic factors. Purpose is to develop an opinion of a certain type of value. Fee simple - all interests, benefits and rights inherent in ownership. Partial divided rights in real estate that represent less than whole. Define type of value and state effective date. Assumptions and limitations: preliminary survey and appraisal plan. Create appraisal plan: data collection & analysis. Specific data details on property and local market. General data economic and social factors. Value of property can be determined by analysing the sales prices of similar properties using the assumption similar properties should sell for similar prices in a competitive market. Principle of substitution informed buyer will pay no more for a property than cost of comparable property.
