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For single family homes, there are two basic methods used in real estate appraisal. They are replacement cost analysis, and using comparable sales. A third appraisal method, based on capitalization, is used for income properties, and is covered in another article.

In figuring replacement cost the question is: What would it cost to buy this land and put this house on it? If the land (improved) would cost $40,000, and the house could be built for $150,000, the value indicated would be around $190,000 - if the house is fairly new. If it has used up 10% of its useful life, you can deduct $15,000 for depreciation.

Replacement cost is not really a very useful measurement. It is difficult to say what the land is worth in a city center where none is left for sale, for example, and tough to gauge depreciation. It is used as a secondary method, and for unique homes that can’t be compared easily with others. The primary method of real estate appraisal used for homes is a market analysis using comparable sales.

Real Estate Appraisal 101

To get a good idea of what a home should sell for, you need to compare it to homes that have sold. Find at least three similar homes in the same area that have sold within the last year, preferably within the last six months. This information is available in the county records, or from a real estate agent with access to the MLS (multiple listing service).

Now the confusing part. You start with the selling price of each of your comparables. If your subject home has a second bathroom, and the a comparable doesn’t, you add the value of the bathroom to the sales price of the comparable. If a comparable home has a blacktop driveway, and the subject home doesn’t, you take the value away.

You are rectifying differences, to see what comparable homes would have sold for if they were like yours. So if a comparable sold for $140,000, and a bathroom is worth $15,000 in your area (ask a real estate agent for help with these figures), you ADD $15,000 for the bathroom it doesn’t have. Then you subtract, say $4,000, for the paved driveway it does have. This gives you a comparable sales price of $151,000.

You do this with all differences between the subject home and each comparable. When done, you average the three comparable prices. So if the three comparables have adjusted sales prices of $151,000, 162,000, and 149,000, you add the three figures and divide by three. The indicated value of the home is $154,000.

Of course all appraisal is an inexact science. If you can only find comparables sold over a year ago, you have to estimate appreciation in the area. If one sold with seller financing, you have to decide how this affected the price. For all of it’s flaws, however, for single family homes, this is the most accurate method of real estate appraisal.

Steve Gillman has invested real estate for years. To learn more, and

On the 40 year journey through the turmoil of a volatile stock
market I’ve noticed “P/E Ratios,” “Consensus Estimates,” ”
Bull and Bear Markets,” stock ratings of 1, 2, 3, 4, 5, star
ratings of 1, 2, 3, 4, 5. Also, stock ratings of “buy,”
“strong buy,” “sell,” “hold;” stock rankings of “market
perform,” “market outperform,” “market underperform,” “market
underweight,” “market overweight,” “market equalweight,” and
“market neutral.”

And there’s more! The 40 year journey includes as well terms
like “Relative Strength Indexes (RSI),” “Bollinger Bands,” 10,
20, 50 and 200 day “moving averages,” “short and long
positions,” charting services, margin accounts, point and
figure charting.

Whew! Let’s see, “butterfly spreads,” “option calls and
puts,” “triple bottom and tops,” “head and shoulder
formations,” “pennants,” “flags,” “cup and saucer formations,”
“wedges,” “necklines,” “ascending triangles,” and a partridge
in a pear tree.

Never has so much been written that has so little meaning for
the long-term, dollar-cost-averaging, buying investor of
company shares that have a historical record of raising their
dividends year after year after year.

“The art of being wise is the art of knowing what to
overlook.” - William James

There is really only one word that insures successful
investing in the stock market, and for that matter, success
for any endeavor, and that one word or option or rating is
“desire.”

The desire to be a success is a force that will negate all the
“charts,” ” ratings,” “consensus estimates,” “P/E ratios,”
“moving averages,” “ascending triangles,” and, even a
partridge in a pear tree.

To read the PREFACE from the book ‘The Stockopoly Plan-
Investing for Retirement’ visit:
http://www.thestockopolyplan.com

Charles M. O’Melia is an individual investor with almost 40
years of experience and passion for the stock market. The
author of the book ‘The Stockopoly Plan’; published by
American-Book Publishing. You can invest in the book at
http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml

You have permission to this article either electronically or
in print as long as the author bylines are included, with a
live link, and the article is not changed in any way. Please
provide a courtesy mailto: charles@thestockopolyplan.com
telling where the article was published.

The reception alone will bust your wedding budget if you’re not
careful. Of course, the most obvious way to save money on the
reception is to keep it small. Where you host this grand
occasion could make or break you.

Your low budget wedding remedy? Find a reception location
that’s free or low cost.

A free location may include, your home, or a friend or family
member’s home. A low cost option might include the Church
reception hall, the local fire department’s reception room, and
club hall rentals. Most will have a kitchen area for preparing
and serving food.

Sometimes you will even find a local restaurant that
specializes in low budget wedding receptions. These will likely
offer a package for the reception which may include dinner and
limited beverage with the rental of restaurant space or banquet
rooms. Check hotels in your area for banquet rooms as well. Some
may rent the banquet room alone and/or offer reception packages
as an option.

Leave no stone unturned in your search! You may happen upon a
gem of a deal that will save you alot of money. Ask around. Get
recommendations from friends and family. Do a local search on
the internet. We have several plantations in our area who offer
wedding reception packages. These are elegant locations and are
usually competatively priced; Including options for the low
budget wedding.

Make a list or chart to record all your findings. Record not
only price but services available, and packages available. Then
you can compare where you will get the most for your money.

For instance, you may be able to rent a space for a really
cheap rate and hire outside catering for the dinner. But, if
you find a location that costs more but will offer you a
package that includes the catering, it may be the better deal
in the long run.

The one big exception to this scenario is if you opt for a
potluck reception. Many guests may be pleased, if not relieved,
to be given the choice to bring a reception dish in place of a
wedding gift. You will find that low budget reception packages
usually come with a low budget menu as well. If you choose this
option, you will save greatly on catering expenses. I am certain
your guests will be more pleased with the menu selections. This
would be your best low budget wedding option and will save the
most money.

The Potluck Reception

Don’t be shy to pursue this potluck reception idea. It is truly
the traditional way to celebrate. And, it is truly the number
one low budget wedding option.

Today’s weddings are so commercialized. You will learn that
caterers offer very limited menus to very limited budgets!
Guests will likely be very pleased and welcome the idea of a
potluck reception.

The potluck reception goes well with any wedding theme. If you
are shy about approaching this option you can simply call it an
“Old Time Traditional Wedding Celebration” The potluck dinner
will suit this theme quite naturally and no-one will even
question it!

You may even want to pick an “Old Time” theme for your
decorating and favors. This will further incorporate the idea
of an old time tradition theme. Perhaps a 50’s theme or a 20’s
theme. These are both popular old time themes.

Simply