INSPECTION AND APPRAISAL
The basic purpose of an appraisal is to help in making a real estate decision.
Objectives of appraisal
To evaluate the property subject to inspection and appraisement to arrive at its fair market value based on existing conditions in the locality and general economic conditions.
To ascertain the actual existence of the property, determine its exact location, and to look into its actual condition.
TYPES OF PROPERTIES
REAL ESTATE PROPERTY
a. Commercial Properties - can be empty land zoned for commercial use, or an existing business building or buildings. Commercial property valuation requires a more complex method, taking into account the income potential of the property, historical revenue, cash flow with owner perks removed and much more. b. Residential Properties - type of property is by far the most popular with both new and experienced agents. Real estate agents then further specialize in types of homes, including condominiums, separate homes, duplexes, high value homes, vacations homes, etc. c. Industrial Land - situated in areas that are exclusively reserved and used for industrial purpose. 2. Land Improvement
3. Chattel - is a term in the world which refers to personal property which can be moved; it is also known as movable property. Some examples of chattel include jewelry, cars, and furniture. Some people just call chattel “personal property,” differentiating it from things like real estate with the term “immovable property.”
Assessors also look at building value under the cost analysis method, but only in terms of how much it cost to construct them. The corporation determines, at the outset of incorporating, how many shares it shall issue and what classes of shares (No Par, Par, Common, Preferred, Participating, etc.) it will issue.
1. Cost Approach – valuation method is based on the principle that no prudent purchaser will pay more than what it cost him to acquire an equally desirable substitute site and to build a similar improvement of equal desirability and utility. 2. Income Approach – based on the principle that value tends to be set by the present worth of the right to future net benefits that may be derived from ownership.
Important Document that an Appraiser should be able to look and verify: a. Sales invoice
b. Letter of credit
c. Deed of assignment
SHARES OF STOCKS AS COLLATERAL
Capital stock has to do with all the shares of stock that represent the ownership of a given company. The exact number of shares that can be issued in the way of capital stock is normally recorded in the current balance sheet for a company. Capital stock will involve all types or classes of stock that the company is authorized to issue. The basis for issuing capital stock is normally outlined in the charter of the corporation.
Common stock is stock in a company which comes with voting rights and an opportunity to share in the profits of the company. This type of stock is commonly issued by companies’ making offerings of stock and is a popular choice for people interested in buying and selling stocks. Prices for common stock vary depending on market pressures. Stock exchanges offer opportunities for people to buy, sell, and trade common stock with each other and with brokers. This type of stock should be contrasted with preferred stock, another type of stock which works slightly differently.
Preferred stock offers several advantages over common stock. The first advantage is a fixed dividend, which generates more reliable returns than common stock; although it also means that the stockholder can miss out when large profits are made because the dividend will not be adjusted. Preferred stock, also known as non-participating preferred stock, is a type of stock that pays the investor a specific dividend only. In addition, in the event of a...