THERE ARE TOTAL OF TWO PARTS FOR THIS ASSIGNMENT
PLEASE SEPARATE THE ANSWERS FOR EACH PART
EX) PART 1) —- PART 2) —-
This is a difficult questions and you will not find the answers in the textbook for this course. You will need think
out of the box. Try and do some research. Try searching under undivided interests in real estate and see what
articles you find on this.
Also there is a class DB in this module for you to interact with your classmates before you do your final post.
There are three owners (non related tenants in common) who live in a single family residential (SFR) home. Each owns a
one third undivided interest in the property and each has to pay one third of the annual expenses (insurance=$600,
property taxes=$3,000, utilities (water/sewer, gas, electric, trash)=$3,600. and maintenance =$1,500). The home has three bedrooms and one bathroom. Each owner occupies one of the bedrooms (all equivalent). The home has been valued at $600,000 and is owned free and clear. The house could rent for about $3,000/Mo. One of the owners wants to sell their one third interest (needs money). Neither of the other two owners want to buy this one third interest.
What do you think is the market value of the one third interest?
Please explain how you came up with your answer.
Can you find some comparable sales of one third or one half interest?
How about getting a mortgage for the one third interest?
You may want to think out of the box. You will not find this one in the textbook. Try and do some research. Try
searching under undivided interests in real estate.
Bonus Discussion California’s appraiser population is declining rapidly
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I would appreciate your comments on this story.
California’s appraiser population is declining rapidly
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Am I soon to be an extinct species or is there going to be lots of opportunities for you young folk. I have created a Discussion Board for you to post. If I see some great ideas you could earn 5 bonus points.