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Striving to look through the microscope of empirical thought, we must not forget that our subject is more than realproperty, it is real people. Imperfect though our efforts may be, we must work to untie the knot of each transaction and of the real estate market as a whole.
The Sales Comparison Approach uses competing homes to develop an opinion of the marketvalue of the property being appraised. The Income Approach uses potential income to develop an opinion of the marketvalue of a property, when applicable. All three are market-based approaches.
However, I have never found that an annoying neighbor really has any impact on marketvalue. I covered this topic in my article, “Is Your Crazy Neighbor Lowering Your Home’s Value.” The HousingMarket Is far From Stationary – Housin g Notes by Jonathan Mille r. An Excess of Appraisers?
The Appraisal of Real Estate, fifteenth edition on page 352, states that “…the relationship between land and improvements and the relationship between a property and its environment must be in balance for a property to achieve its optimum marketvalue. Click here to visit their website.
MarketValue and Appraised Value: Exploring Various Appraisal Values By Jo Traut Excerpts: You’ve probably been asked about the difference between “marketvalue and appraised value” by clients seeking a mortgage. We don’t provide an appraised value of a property.
For most Americans, the idea of living in a mansion falls squarely in the realm of the daydream—one perhaps indulged while watching “The Real Housewives of Beverly Hills,” or for those old enough to still hear the unmistakable enunciation of Robin Leach ringing in their ears during an episode of “Lifestyles of the Rich and Famous.”.
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