please respond to cj. with. 150. words. BRE 120 – Real Estate Appraisals Charl

please respond to cj. with. 150. words.
BRE 120 – Real Estate Appraisals
Charliei
11/20/23
Walt Huber
Chapters 9 & 10
Overview:
To start with Chapter 9, The topic is sales comparison to approach. This gets into comparables, and the steps of a sales comparison approach. Chapter 10 is focused on the income approach to value and both of these approaches play a key role in the appraisal form.
Chapter 9:
The first thing in this chapter is the market theory of value. Which uses the sales comparison approach which is pretty much the market comparison or market data approach. This also values the property based on the market theory of value. The sales comparison approach is usually the preferred approach because it is easy to understand (Pg. 277).
Chapter 10: The income approach is the third major approach that uses an orderly approach to determine property value. I learned about the URAR and understood the figure. There is also the investor’s perception of value which talks about the rate of return, risk, and return on investment (Pg. 315).
Chapter 9: Another important key concept I came across was the comparable sales and the steps in the sales comparison approach. A comparable sale must be in the same market as the subject property so it appeals to the same type of buyers. The steps in the approach consist of 5 steps that changed the way appraisers gather data (Pg. 283).
Summary: Overall, both chapters were very informative to me, I felt like chapter 9 helped me put some pieces together more so than chapter 10. However, learning about the income approach like income capitalization and discounting. I felt like I gravitated to chapter 9 more because of the market theory and the Real estate markets, and the comparison approach I found easier to use over the income approach.