Exercises to the text:
Exercise 1. Make up all kinds of questions to the text.
1. ________________________________________________________________
2. ________________________________________________________________
3. ________________________________________________________________
4. ________________________________________________________________
Exercise 2. Insert the proper word.
1. In other cases, the _______________ may have been just one of several _______________ sold or _______________ between two parties.
2. At other times, a buyer may _______________ pay a premium over and above the _______________-_______________ market value.
3. For example, this can _______________when a merger or _______________happens at a price which is higher than the value represented by the price of the _______________stock.
4. This is something that _______________will sometimes pay a high price for.
5. This situation can happen in _______________ _______________ _______________too.
Exercise 3. Translate the word combinations.
really worth ___________________________________________________
property's market value __________________________________________
several properties _______________________________________________
usual explanation _______________________________________________
real estate purchases ____________________________________________
Exercise 4. Make up sentences, using these words.
willingly valuation acquisition
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Черкаський політехнічний технікум Для студентів III курсу, група ОД
Text № 2. Викладач Кособокова А.В.
Text 3.
Approaches to Value
There are three general groups of methodologies for determining value. These are usually referred to as the "three approaches to value" which are generally independent of each other: the cost approach, the sales comparison approach and the income approach.
H
owever,
the recent trend of the business tends to be toward
the
use of a scientific methodology of appraisal which relies
on the foundation of quantitative-data, risk, and geographical based
approaches. The appraiser
can generally choose from three approaches to
determine
value. One or two of these approaches will usually be most
applicable,
with the other approach or approaches usually being less useful. The
appraiser has to think about the "scope
of work",
the type of value, the property itself, and the quality
and quantity
of
data available for each approach. No overarching
statement can be made that one approach or another is always better
than one of the other approaches.
The appraiser has to think about the way that most buyers usually buy that type of property. What appraisal method do most buyers themselves use for the type of property being valued? This generally guides the appraiser's thinking on the best valuation method, in conjunction with the available data. For instance, appraisals of properties that are typically purchased by investors (e.g.,
Черкаський політехнічний технікум Для студентів III курсу, група ОД
Text № 3. Викладач Кособокова А.В.
skyscrapers) may give greater weight to the income approach. On the other hand, small retail or office properties, often purchased by owner-users, may give greater weighting to the sales comparison approach. While this may seem simple, it is not always obvious.