Appraiser

  

An appraiser determines the value of a property (like your home). They take a whole bunch of factors into account (like what condition the property is in, what the neighborhood is like, and what problems the property may have).

For example, if you have a crack in the foundation in your garage, the appraiser will document this. But there are other types of appraisers. For example, you might have your ruby and diamond ring appraised for insurance purposes.

You can also get your trainer to give you an appraisal. It probably won't be worth anything financially speaking. Also, that one might be the hardest one to hear. On second thought, don't ask your trainer for an appraisal. Better off showing them your rubies and your diamonds.

Related or Semi-related Video

Finance: What is REIT?8 Views

00:00

finance a la shmoop what is a REIT all right people let's start with the basics

00:08

the letters reet real estate investment trusts it's basically a mini mutual fund [REIT written on chalkboard]

00:14

for real estate investments think a chain of old age homes which might carry

00:19

a market value of a million bucks each but which throw off 80 grand a year in

00:24

net cash profits that is the entire chain of old-age homes throws off 80 [People with homes for heads appear]

00:29

grand a year in cash profits all right in melding together a whole bunch of old

00:34

age homes at least in theory the volatility of anyone home dying that's [Heart rate monitor appears]

00:39

the risk of it and then affecting the creditworthiness of the entire portfolio

00:43

of real estate holdings is lowered with scale a REIT can then borrow money more

00:49

liquidly or easily let the transaction cost $4 or a lot less and it can [Coins falling]

00:54

leverage its legal obligations and its meds buying process with scale because

00:59

it's a lot cheaper per pill to buy four million aspirin a month in just four

01:03

hundred along with volume deals on diapers and dentures that you know [Piles of diapers and dentures appear]

01:06

across a much bigger swath of buyers well REITs have been around for a while

01:10

ironically they came into existence as an extension of the cigar excise tax in [Man smoking]

01:15

1960 and extend as far in ownership as warehouses commercial office buildings

01:20

shopping malls where piercings happen in strange places and apartment complexes

01:25

of all shapes and sizes well to qualify as a read a company must invest at least [An apartment complex]

01:30

75% of its assets in real estate re there that they re NRB holding cash or

01:35

US Treasury bonds with the intent of investing in real estate it has to

01:39

receive at least 75% of its gross profits from real estate rentals it has

01:43

to pay out at least 90% of its taxable profits as dividends to its shareholders

01:48

annually and basically the government is saying well if you're gonna act like a [Man talking in congress]

01:51

REIT you actually have to be one you can't have 75 percent of your gross

01:55

profits in like oil dividends or dividends from tech companies if those

01:59

even exist well a REIT has to have at least a hundred shareholders and have

02:03

its ownership diversified such that at least half of its ownership shares are

02:08

held by five or more individuals like it has to actually look like a fund it

02:13

can't just be a shell corporation put up by one guy to uh you know take advantage [Man stood outside of Shell co.]

02:17

of the system well REITs are publicly available for

02:19

Joe Schmo to invest in they tend to pay a very high dividend and they grow asset

02:23

values at a modest premium to inflation like a few percent a year that is they

02:28

don't grow much but they pay a lot of cash dividend out and that's nice for [Cash falling]

02:32

old people so most of their payback to investors is

02:34

quote bond-like unquote and that's a REIT now keep an eye out for those bulk

02:39

diaper deals for grandpa and good luck dealing with the bulky diapers [Diaper throw into trash and woman appears]

Up Next

Finance: What is the Difference Between Market Value and Book Value?
42060 Views

What is the difference between market value and book value? These two figures describe what a company is worth. Book value does this by finding the...

Finance: What is Real Estate Tax?
9 Views

What is real estate tax? Depending on the state in which you reside, real estate and property are subject to state and municipal taxes, which are c...

Find other enlightening terms in Shmoop Finance Genius Bar(f)