Answered You can hire a professional tutor to get the answer.
Hi, I need help with essay on Valuation of property. Paper must be at least 2750 words. Please, no plagiarized work!Download file to see previous pages... A real estate appraisal is performed by a lic
Hi, I need help with essay on Valuation of property. Paper must be at least 2750 words. Please, no plagiarized work!
Download file to see previous pages...A real estate appraisal is performed by a licensed or certified appraiser (in many countries known as a property valuer or land valuer and in British English as a surveyor). If the appraiser's opinion is based on Market Value, then it must also be based on the Highest and Best Use of the real property. For mortgage valuations of improved residential property in the US, the appraisal is most often reported on a standardized form, such as the Uniform Residential Appraisal Report. Appraisals of more complex property (e.g. -- income producing, raw land) are usually reported in a narrative appraisal report.
agents and supplied as part of the negotiations relating to the sale of the site was seen to contain a series of calculative errors on checking the calculations. The site value provided by the landowners is found to be 'excessive'.
Thus, we see that the corrected valuation of the site is closer to 7.5 million pounds and not 8.5 million pounds as suggested by the landowners' agents in their appraisal. So their appraisal is found to be faulty and the inherent errors and series of calculative errors are identified and corrected.
The significance of a sale of a similar nearby property for 5,000,000 pounds is relatively significant in the appraisal and ca...
The rate of interest for a short term housing loan is closer to 13%.
Calculative errors:
This is the appraisal as submitted by the landowners' agents which was found to contain a series of calculative errors and inherent flaws.
Detailed Residual Valuation
Development Income
Shops 800m2 *95%
760 * 250m2 '190,000
Offices 6,750m2 *90%
6,075 * 200m2 '1,215,000
Total Income '1,405,000
YP in 2 years 7% 14.28
Gross Development Value '20,063,400
Development Costs
Building Cost
Shops 800m2 * '500m2 '284,000
Offices 5,400m2 * '850m2 '4,590,000
Subtotal '4,990,000
Ancillary Costs ' 150,000
Subtotal '5,140,000
Professional Fees 12.50% '642,500
Subtotal '5,782,500
Short Term Finance say 12% on ' total costs for 24 months
'2,891,250 *(1.12)^2 - '2,891,250 '735,533
Subtotal '6,518,033
Letting Fees 15% of Income '210,750
Subtotal '6,518,033
Developers Profit, 20% of '5,782,500 '1,156,500
Total Development Costs '7,674,533
Residual Value '12,388,867
Site Value on completion:
Site Value Calculation
1.03x (1.12)^3 = 1.45
12,388,867 / 1.45 '8,544,046
Corrected Calculations:
This is the alternative 'more accurate' valuation of the site.
Detailed Residual Valuation
Development Income
Shops 800m2 *95%
760 * 250/m2 '190,000
Offices 6,750m2 *90%
6,075 * 200/m2 '1,215,000
Total Income '1,405,000
YP in 2 years 7% 14.
