If you’re looking for a thorough discussion of all aspects of home ownership, value and economics, you’re in luck. The Appraisal Institute’s new book – “Residential Property Appraisal” by Mark R. Ratterman, MAI, SRA – addresses those topics in addition to specialty residential property types and markets.
“Each chapter includes examples illustrating common scenarios encountered in appraisal practice and presents definitions of key terms to help the reader understand the important concepts presented,” Appraisal Institute President Jefferson L. Sherman, MAI, AI-GRS, writes in the book’s foreword. “The text is comprehensive and accessible, making it suitable for both classroom instruction and individual self-study.”
One of the book’s highlights is an in-depth description of all eight steps of the appraisal process:
- Step 1: Identification of the problem
- Step 2: Scope of work determination
- Step 3: Data collection and property description
- Step 4: Data analysis
- Step 5: Site value opinion
- Step 6: Application of the approaches to value
- Step 7: Reconciliation of value indications and final value opinion
- Step 8: Report of defined value
The book addresses different estate and property types and dives into the importance of appraisals, the valuation process and property rights.
“Residential Property Appraisal” also discusses the principles of value, real estate, economics and finance. This chapter explores the types of value including market value, gross or net price, assessed value, anticipated sales price and insurable value. It goes further to explain some of the key changes, trends and cycles of real estate.
The book looks at neighborhood and market area analysis along with highest and best use. Readers will learn about market area influences, consistency in markets and the four tests of highest and best use.
Overall, “Residential Property Appraisal” explores the following topics:
- Real property ownership and appraisals;
- Principles of value, real estate economics, and finance;
- The valuation process, beginning the appraisal, and data collection;
- Neighborhood and market area analysis and highest and best use;
- Site descriptions;
- Improvements descriptions;
- Land and site valuations;
- Cost approach;
- Estimating depreciation;
- Sales comparison approach;
- Adjusting comparable sales;
- Income capitalization approach;
- Final reconciliation and the appraisal report;
- Specialty residential property types;
- Green and high-performance homes; and
- Specialty residential markets.
“Residential Property Appraisal” is a 500-page soft cover book. It is available for $85 ($75 for Appraisal Institute professionals). A print/PDF bundle also is available. Call 888-756-4624 or order online.