Title: Identify the basic principles of value in the real estate market and factors that cause variation in value.
Course: Real Estate (12154) > Section: Appraising Residential and Income-Producing Property

Identification should include definitions and examples of real estate

- anticipation
- change
- competition
- conformity
- contribution
- highest and best use
- increasing and diminishing returns
- plottage
- regression and progression
- substitution
- supply and demand.

Identification should also include a discussion of how and why real estate values vary.

DPOR correlations: 18VAC135-20-400. 1 (Economy and social impact of real estate); 18VAC135-20-400. 2 (Real estate market and analysis); 18VAC135-20-400. 20 (Appraisal of residential and income-producing property)

Teacher resource: Modern Real Estate Practice, 19th ed., pages 303-304

Process/Skill Questions:

- What is demand? How does high demand affect the values of real estate?
- How does low demand affect the values of real estate?
- What factors make real estate values vary?
- How do economic episodes such as a pandemic, recession, and unemployment affect real estate value?
- What are the different types of value? Why is the real estate agent most concerned with market value?