New York · Chapter 14 of 26
Valuation Process and Pricing Properties
The difference between appraisal, valuation and evaluation, the definition of market value, price versus cost, the comparative market analysis (which may never be called an appraisal), highest and best use, the three approaches to value, depreciation and how a salesperson prices a listing.
35-minute read · Built for the Salesperson Exam
Appraisal, Valuation and Evaluation
The syllabus distinguishes three terms. An appraisal is an unbiased estimate of the nature, quality, value or utility of an interest in identified real estate. Valuation is the process of estimating the value of an identified interest in a specific property as of a given date. Evaluation is a study of the nature, quality or utility of a property interest in which a value estimate is not necessarily required, such as a highest-and-best-use, feasibility or market supply-and-demand study. Appraisals for federally related transactions must be performed by state licensed or certified appraisers; in New York appraisers are licensed and certified by the Department of State under Executive Law Article 6-E.
N.Y. Exec. Law Art. 6-E (§160 et seq.)
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