Essay --

Final Examination(2) Discuss the three approaches to belongings valuation. What is the process of each? When might it be better to use angiotensin converting enzyme approach over the other?The three approaches to post valuation atomic number 18 comparable sales approach (market data approach) income approach and cost kernel approach. Comparable sales approach is determined by exploitation juvenile sales of similar properties to the one being assessed. This estimates true property note mensurate by comparing the property that is in question to others that progress to been late change and then making the adjustments as needed. The idea is that you need to gamble market atomic number 18as that have relative or same economic status. at a time this process is through with(p) then you endure group the parcels in different categories, i.e. size, year it was built, the size of the lot, etc. The book says that the property that is not sold is compared to similar property t hat a market value throw out be observed and then infers a value. (LJJ, 155) It is common in jurisdictions to assess parcels as a percentage or fraction of the full market value. In theory it does not make a difference if the full value or fractioned value is assessed, the outcome should be the same. When using fractional judicial decision you need to use a higher tax rate than using market value assessment. This seems to make taxpayers more comfortable but can lead to problems if different fractions are used in the same jurisdiction. other problem is that this approach requires a large number of sales and can be time consuming if done annually or for the initial time. This approach is great for residential properties.The income approach converts the future returns from ownership of a parcel into their present value equivalent. This approach can be done by c... ...edit of the issuing government. This non-guaranteed bond is backed by a authoritative business-like government ac tivity and not a larger government entity that has onerous powers. Some revenue bonds can have lower affaire grade than obligation bonds. If for example a water district with a clarified history of borrowing may have a lower interest rate than a general obligation bond with a declining property tax and low personal income. (LJJ, 492) Unlike obligation bonds these types of bonds generally do not need or require a popular select and are repaid by the users f the service. This means that no tax dollars are directly used which is considered a good thing. The more costly of the both bonds are revenue bonds because they generally have higher interest rates. If at that place was a default on the general obligation bonds then taxes would have to be raised which is less popular.