a property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. when it is completed, the owner sells the home for $560,000. the appraiser for the buyer's mortgage company appraises the home at $525,000. the sales contract for $560,000 represents the of the property.

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14-11-2022
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a property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. when it is completed, the owner sells the home for $560,000. the appraiser for the buyer's mortgage company appraises the home at $525,000. the sales contract for $560,000 represents the of the property.

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anzlaiman anzlaiman · Answer 1 · 2022-11-19T18:43:07+01:00

The sales contract for $560,000 represents the VALUE of the property.

Moreover, Value is defined as the monetary relationship between properties and those who buy, sell or use those properties. Value expresses an economic concept. The sales comparison approach estimates value based on the local market price required to acquire a property of similar location, quality, size, age and condition. The income approach estimates value based on the typical market income of a similar property.

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