The Student Handbook to THE APPRAISAL OF REAL

The Student Handbook to THE APPRAISAL OF REAL ESTATE Chapter 1 Introduction to Appraisal

Real Estate, Real Property, Personal Property, and Intangible Assets n n Real estate is the physical thing. It cannot be appraised or sold. Real property is the rights in realty. Real property cannot be touched but can be appraised and sold. Personal property is tangible but not affixed to the real estate. Intangible property consists of nonphysical assets. Student Handbook to THE APPRAISAL OF REAL ESTATE Chapter 1 2

The Bundle of Rights n n n The right to sell a property The right to occupy real estate The right to lease a property The right to mortgage a property The right to create a life estate Other rights Student Handbook to THE APPRAISAL OF REAL ESTATE Chapter 1 3

Public Restrictions on Ownership n n Taxation Eminent domain Police power Escheat Student Handbook to THE APPRAISAL OF REAL ESTATE Chapter 1 4

Private Restrictions on Ownership n Easements q Affirmative easement q Appurtenant easement q Conservation easement q Easement by necessity q Easement by prescription q Easement in gross q Negative easement q Preservation easement Student Handbook to THE APPRAISAL OF REAL ESTATE Chapter 1 5

Who Needs Appraisals? n n n Attorneys Lenders Corporate relocation companies Government agencies Private individuals Student Handbook to THE APPRAISAL OF REAL ESTATE Chapter 1 6

Purpose of an Appraisal n n Definition of value – type of value appraised can affect the opinion of value Intended use and intended user Student Handbook to THE APPRAISAL OF REAL ESTATE Chapter 1 7