Professional Documents
Culture Documents
Real Estate Principles A Value Approach 6Th Edition David C Ling All Chapter
Real Estate Principles A Value Approach 6Th Edition David C Ling All Chapter
Real
Estate
Principle
s
A Value
Approach
Sixth Edition
page ii
FINANCIAL MANAGEMENT
Block, Hirt, and Danielsen
Foundations of Financial Management
Seventeenth Edition
Brooks
FinGame Online 5.0
Bruner
Case Studies in Finance: Managing for Corporate Value
Creation
Eighth Edition
DeMello
Cases in Finance
Third Edition
Grinblatt (editor)
Stephen A. Ross, Mentor: Influence through Generations
Higgins
Analysis for Financial Management
Twelfth Edition
Shefrin
Behavioral Corporate Finance: Decisions that Create Value
Second Edition
INVESTMENTS
Bodie, Kane, and Marcus
Essentials of Investments
Eleventh Edition
INTERNATIONAL FINANCE
Eun and Resnick
International Financial Management
Eighth Edition
REAL ESTATE
Brueggeman and Fisher
Real Estate Finance and Investments
Sixteenth Edition
Altfest
Personal Financial Planning
Second Edition
Real
Estate
Principle
s
A Value
Approach
Sixth Edition
David C. Ling
Univ
ersit
y of
Flori
da
Wayne R.
Archer
Univ
ersit
y of
Flori
da
page iv
Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10121.
Copyright © 2021 by McGraw Hill LLC. All rights reserved. Printed in the United
States of America. No part of this publication may be reproduced or distributed in
any form or by any means, or stored in a database or retrieval system, without the
prior written consent of McGraw Hill LLC, including, but not limited to, in any
network or other electronic storage or transmission, or broadcast for distance
learning.
Some ancillaries, including electronic and print components, may not be available
to customers outside the United States.
1 2 3 4 5 6 7 8 9 LWI 25 24 23 22 21 20
ISBN 978-1-260-57049-6
MHID 1-260-57049-5
All credits appearing on page or at the end of the book are considered to be an
extension of the copyright page.
The Internet addresses listed in the text were accurate at the time of publication.
The inclusion of a website does not indicate an endorsement by the authors or
McGraw Hill LLC, and McGraw Hill LLC does not guarantee the accuracy of the
information presented at these sites.
mheducation.com/highered
page v
Dedications
To my wife, Penny,
who has always
matched our efforts
in this book with an
equal measure of
her devotion,
support, and
assistance; to our
children Stephen,
John, and Jennifer,
who generously
supported me with
enthusiasm for the
task; and to my
mother and Penny’s
mother, who always
kept the faith that I
would do something
useful with my
“typewriter.”
—WRA
page vi
DAVID C. LING
WAYNE R. ARCHER
Glossary 635
Index 650
page viii
Preface
Intended Audience
Real Estate Principles is designed for use in an introductory real
estate course at both the undergraduate and graduate levels, though
some chapters may be used by instructors teaching courses focused
on real estate market analysis, finance, and investment. In terms of
background or prerequisites, some familiarity with basic economics
and business finance principles is helpful and will allow the instructor
to move more quickly through some of the material (especially Parts
1, 3, 6, and 7). However, the book is designed to be largely self-
contained. As a result, students with different backgrounds will find
the text accessible. In particular, the direct use of discounting and
other time-value-of-money techniques is limited to Parts 6 to 8,
allowing the text to be used by students with little or no background
in time-value-of-money techniques.
Organization
Part 1 of the book provides an overview of real estate and real
estate markets. In Part 2, we provide an overview of the legal
foundations of value and discuss the significant influence that
federal, state, and local governments and agencies have on real
estate decision-making and property values. In Part 3, we discuss
the market determinants of value, how the benefits and costs of
ownership can be forecasted, and how real estate appraisers convert
these estimates of future cash flows and expenses into estimates of
current market value.
Part 4 discusses the financing of home ownership, including the
law that underlies residential mortgage contracts, the most common
types of mortgages used to finance home ownership, and the
lenders and other capital market investors that provide funds for
residential mortgage loans. In addition to financing their real estate
acquisitions, owners must navigate the often time-consuming and
complex waters associated with acquiring and disposing of real
property. The brokering and closing of real property transactions is
presented in Part 5.
Parts 1 to 5 (Chapters 1 to 13) do not require knowledge of
discounting and time-value-of-money techniques; thus, these
chapters are accessible to students with limited or no background in
finance and economics. Although basic time-value concepts are at
the heart of this book, not every student studies them before
encountering a real estate course. We have separated the formal
application (though not the underlying ideas) of time-value into one
section (Part 6). This enables the instructor to choose when and how
these concepts will be put before the student—whether before,
parallel with, or after the student is introduced to the real estate
content. Indeed, one option is for the student to complete Chapters
1 to 13 without interjection of formal time-value instruction. Further,
this nontechnical approach can be extended to Chapters 16 to 18, as
noted below.
In Part 6, we introduce the formal applications of compound
interest and present value that are often key to a deeper
understanding of mortgage calculations and the valuation of income-
producing properties, such as office buildings and shopping centers.
For students who have had basic economics and business finance
courses, Chapters 14 and 15 of Part 6 may contain substantial
review. For others, these chapters contain new concepts that will
require study and practice to master. Instructors wishing to bypass
Part 6 can move directly from Part 5 to Chapters 16 to 18. However,
instructors wishing to dig more deeply into commercial real estate
financing and investing should review or cover in detail Chapters 14
and 15 before proceeding with coverage of Part 7. We page xi
note that the three chapters contained in Part 8 also do
not assume knowledge of time-value-of-money techniques.
Although we recommend the material be covered in the order
presented in the text, Parts 2 through 8 can generally be covered in
any order, depending on the preferences of the instructor and the
primary focus of the course. For example, instructors who prefer to
cover the investment material first may elect to move directly to
Parts 6 and 7 immediately after Part 1.
Regardless of the emphasis placed on the various chapters and
materials, we believe strongly that an introductory course in real
estate should be as substantive and challenging as beginning
courses in fields such as accounting, economics, and finance. The
course should go beyond definitions and the discussion of current
professional practice. Moreover, its focus should be on real estate
principles and decision tools, not simply the current rules and
practice for transactions that are so important to real estate sales
licensing and brokerage.
David C. Ling
Wayne R. Archer
page xii
page xiii
Main Features
Learning Objectives
Chapter Outlines
A chapter outline is featured among each chapter opener. Each
outline lists the chapter headings and subheadings for a quick
reference for both professors and students.
Chapter Introductions
page xiv
Key Terms
Key terms are indicated in bold within the text for easy reference. A
list of key terms from each chapter plus page references can be
found in the end-of-chapter material. The glossary contains the
definitions of all key terms.
Industry Issues
page xv
Website Annotations
Websites are called out in the margins in every chapter and include a
notation of what can be found by visiting them.
Concept Check
Every major section contains one or more questions for review. This
feature helps students test their understanding of the material
before moving on to the next section. Solutions to each Concept
Check are provided at the end of each chapter so students can
check their answers.
Calculator Keystrokes
End-of-Chapter Features
Chapter Summary
Each chapter ends with a short section that highlights the important
points of the chapter. This provides a handy study tool for students
when they review the chapter.
Test Problems
Because solving problems is so critical to a student’s learning,
approximately 10 multiple-choice problems are provided per chapter
to help students master important chapter concepts.
Study Questions
page xvii
FOR INSTRUCTORS
You’re in the driver’s seat.
Want to build your own course? No problem. Prefer to use our
turnkey, prebuilt course? Easy. Want to make changes throughout
the semester? Sure. And you’ll save time with Connect’s auto-
grading too.
page xix
FOR STUDENTS
Effective, efficient studying.
Connect helps you be more productive with your study time and get
better grades using tools like SmartBook 2.0, which highlights key
concepts and creates a personalized study plan. Connect sets you up
for success, so you walk into class with confidence and walk out with
better grades.
No surprises.
The Connect Calendar and Reports tools keep you on track with the
work you need to get done and your assignment scores. Life gets
busy; Connect tools help you keep learning through it all.
page xxx
page xx
Supplements
Instructor supplement files for this edition are available in Connect.
Acknowledgements
We take this opportunity to thank those individuals who helped us
prepare this sixth edition of Real Estate Principles. A special debt of
gratitude goes to Dr. Halbert Smith, Professor Emeritus at the
University of Florida. Professor Smith has been a long-time mentor
and colleague to us both. His book Real Estate and Urban
Development (Irwin 1981), coauthored with Tschappat and Racster,
significantly influenced our approach to the teaching of real estate
principles over the last 35 plus years. Many of the ideas first put
forth in Real Estate and Urban Development can be found in this
text. Dr. Smith served as Contributing Editor on the first edition of
this book, providing detailed comments and suggestions during each
phase of the book’s original development.
Our good friend and colleague, Dean Gatzlaff, was to have joined
us in the creation of this book, but found it to be infeasible. We are
grateful to him for his substantial contribution in providing initial
drafts of Chapters 1, 4, 7, and 8. We would also like to thank Jay
Hartzell (University of Texas-Austin) for providing some of the ideas
and material for the revision of Chapter 17.
We are grateful to the following individuals for their thoughtful
reviews and suggestions for this text:
Paul Asabere
Temple University
Candy Bianco
Bentley University
Donald Bleich
Steven Bourassa
Florida Atlantic University
Dan Broxterman
Florida State University
Jay Butler
Arizona State
Steve Caples
Charles Corcoran
University of Wisconsin-River Falls
Barbara Corvette
John Crockett
George Mason University
Jon Crunkleton
Old Dominion University
Charles Delaney
Baylor University
John Demas
University of San Diego
David Downs
Virginia Commonwealth University
Mike Eriksen
University of Cincinnati
Tom Geurts
George Washington University
page xxi
Richard Ghidella
Fullerton College
Paul Goebel
Texas Christian University
W. Michael Gough
DeAnza College
Chris Grover
Victor Valley College
Matthew Haertzen
University of Arizona
Daniel Ham
California State University-Long Beach
Tom Hamilton
Roosevelt University
Dana Harrell
Bentley University
Michael H. Harrity
Babson College
Darren Hayunga
University of Georgia
Don Johnson
Florida International University
Michael LaCour-Little
Fannie Mae
Han Bin Kang
Illinois State University
George Lentz
Cal Poly Pomona
Danielle Lewis
Southeastern Louisiana University
Mallory Meehan
Pennsylvania State University
Walt Nelson
Missouri State University
Joseph Ori
Santa Clara University
Thomas Ortell
Steven Ott
University of North Carolina-Charlotte
Jane Patterson
Missouri State University
Melina Petrova
Syracuse University
Ed Prill
Colorado State University
Sid Rosenberg
University of North Florida
Jeff Rymaszewski
University of Wisconsin-Milwaukee
Ben Scheick
Villanova University
Marion Sillah
South Carolina State University
David Sinow
Carlos Slawson
Louisiana State University
Brent Smith
Virginia Commonwealth University
Bruce Southstone
Cabrillio College
Tom Springer
Clemson University
Wei Sun
University of Memphis
Thomas Thompson
University of Texas, Arlington
James Thorson
Southern Connecticut State University
Ciro Trotta
New York University
Steven Tufts
University of Florida
Neil Waller
Sally Wells
Columbia College
Another random document with
no related content on Scribd:
A l l e r t s e a c h ) de naam van een huis onder Bakkeveen in
Opsterland, Friesland; A l l e r d a - s a t e heet eene boeren-hofstede
te Ternaard in Friesland; A l d e r s m a - h e e r d is eene boeren-
hofstede te Esinge in Groningerland; A l d r i n g a - b o r g is een
adellijk huis te Haren in Groningerland; A l d e r s h e m is de
oorspronkelijke naamsvorn van het dorp Oldersum in Oost-
Friesland; A l d r i n g t o n ligt in Sussex, Engeland; A l d r i n g h a m
eindelijk is de oude, middeleeuwsche naamsvorm van een dorp in
Artesië, Frankrijk, dat heden ten dage als A u d r e h e m bekend is.
Met blijdschap mocht ik, op mijn verzoek, van den heer Aug.
Sassen, den welgeleerden en volijverigen Archivaris van Helmond,
eene lijst ontvangen van namen der Helmondsche burgerij uit de
veertiende en de vijftiende eeuw. Die namen, door den Heer Sassen
met veel zorgvuldigheid uit oude Helmondsche oorkonden en
geschriften, vooral ook uit de Helmondsche Schepenacten bijeen
verzameld, waren mij, in menig opzicht, voor mijne navorschingen
op ’t gebied der namenkunde van groot belang. Zij hebben mij dan
ook aanleiding gegeven tot het opstellen van de volgende
verhandeling.
In het midden der veertiende eeuw, ten jare 1348, het oudste jaar
dat in onze naamlijst voorkomt, waren er te Helmond geene
personen meer die nog op dien alleroudsten en eenvoudigsten trap
der benaming stonden, waar bij de lieden slechts eenen enkelen
naam, en geenen toenaam, in welken vorm dan ook, hadden.
Althans onze lijst vermeldt zulke benamingen niet. Achter alle
doopnamen, daarin vermeld, staat een andere naam als toenaam;
een vadersnaam veelal, of anders een plaatsnaam, of ook ’t eene of
andere algemeene woord, als bijnaam, aan het bedrijf van den man
of van diens vader, of aan de eene of andere bijzondere geestelijke
of lichamelijke eigenschap ontleend.
De oudste vorm der patronymicale benamingen, volledig, met het
woord zoon (in dit geval soen) daar achter, is in onze naamlijst
vertegenwoordigd in de namen van H e n r i c R o e f s s o e n
(1389) 1, G o d a r t L y z e n s o e n (1401), G h e v a r t
L u t e n s o e n (1401), J a n C o l e n s o e n (1419), A n c h e m
G o e s w ij n s s o e n [174](1424), B r u y s t e n Y s e b o u t s s o e n
(1426), G o d a r t V r a n k e n s o e n (1439), enz. Dat is: H e n r i c
s o e n v a n R o e f of H e n d r i k zoon van R o e f (R o d f r e d );
G o d a r t zoon van L y s e (een vrouwennaam? E l i z a b e t h ? );
G h e v a r t of G e v a a r t zoon van L u t e (H l o d o ); J a n zoon van
C o l e n (N i c o l a a s ); A n c h e m (A n s e l m ? ) zoon van
G o e s w ij n (G o s e w ij n , G o d s w i n ); B r u y s t e n zoon van
Y s e b o u t (I s b o l d , I d i s b a l d ); G o d a r t (G o t h a r d ) zoon
van V r a n k e (F r a n c o , F r a n k ) 2.
Het kwam wel voor, dat twee personen niet slechts den zelfden
doopnaam hadden, maar ook den zelfden vadersnaam voerden,
omdat toevalliger wijze ook hunne vaders beiden den zelfden naam
hadden gedragen. Dan was nog eene andere toevoeging achter hun
patronymicum noodig, om die twee personen van elkanderen te
kunnen onderscheiden. Of ook, bij bijzondere, belangrijke
aangelegenheden, zoo als die, welke het opstellen van oorkonden
(uiterste wilsbeschikkingen, koopbrieven, of andere
overeenkomsten) ten gevolge hadden, was eene zeer nauwkeurige
aanduiding der verschillende personen noodig, en voegde men
daarom nog eene nadere onderscheiding achter het patronymicum.
Daar toe was de naam van de plaats (stad of dorp, berg, bosch of
heide) waar deze of gene persoon woonde, of anderszins
herkomstig was, bijzonder dienstig. Zulke namen komen op de
naamlijst voor als: D y r c C n o o p s o e n v a n Z o e m e r e n
(1389); J a n C l a e u s s o e n v a n L a n c h e z e (1401);
L a m b r e c h t S t e v e n s s o e n v a n M i l h e z e (1401);
D i d d e r i c J a n s s o e n v a n d e n B r o e k e (1402); A y e n
H e r m a n s s o e n v a n E y n d h o u t s (1407); R o e f
A l a r t s s o e n u t e n V e h u s e , dat is R o e f of R o d f r e d , de
zoon van A l a r t of A d e l h a r t uit den veehuize, uit het veehuis
(dus de man die in een huis woont, waar in het bijzonder vee
gehouden of gestald wordt?). [175]Verder L o d e w i c h
L o d e w i c h s s o e n v a n L o e f f e n (1418). Deze zelfde man
komt in eene vroegere oorkonde van den jare 1410 eenvoudig voor,
met ingekorten doopnaam, als L o d e k e n v a n L o f e n ;
waarschijnlijk moet deze plaatsnaam L o e f f e n of L o f e n wel den
naam der stad Leuven voorstellen. Eindelijk nog V r i e n t k e n
V r i e n t s v a n D o e r n e n (Deurne) (1423); J a n
Y w a e n s s o e n v a n d e n B e r g h e (1423); R y m b o u t
H e n r i x s o e n v a n d e n B e r g e (1444), enz.
Het bleek echter op nieuw dat deze korte benamingen niet in alle
gevallen voldoende waren. Indien het toch geviel dat daar in ééne
plaats twee personen waren die beiden niet enkel den zelfden
doopnaam maar ook den zelfden vadersnaam droegen, dan was
men wel genoodzaakt, zoo men die twee lieden nauwkeurig [179]van
elkanderen onderscheiden wilde, weêr de toevlucht te nemen tot
allerlei toe- en bijnamen. De cirkelgang der benamingen, die weêr
moest uitloopen op eene opéénhooping van allerlei naamsvormen,
was hier mede weêr een nieuw tijdperk ingetreden. Die toe- en
bijnamen werden weêr op allerlei verschillende wijzen gezocht en
gevonden. Bij voorbeeld in de maagschapsbetrekkingen der
menschen: H e n n e k e n R o e s e l m a n s M e l y s b r u e d e r
(1439); J a n v a n d e n L o e ( d e s s e l f s ) A r t s o e m , de
oom van A r t v a n d e n L o e H e n r i c M e t t e n s o e n s
s o e n , op bladzijde 175 reeds vermeld. Misschien behooren hier
ook toe J a n N e v e (1348) en J a n L o d e n N e e f s s o e n
(1424), J a n zoon van L o d e ( L o d e w ij k ) N e e f (of van
N e e f - L o d e ?).