ELEC3&PROFCOR8.PRELIM.WEEK1.pptx
Transcript
DEVELOPMENT OF REAL ESTATE CONSULTING PRACTICE In the U.S, the real estate consulting practice, may have been formally recognized as a distinct real estate practice by the organization of a society of counselors in l953 by a group of Realtors, which affiliated itself with the National Association R...
DEVELOPMENT OF REAL ESTATE CONSULTING PRACTICE In the U.S, the real estate consulting practice, may have been formally recognized as a distinct real estate practice by the organization of a society of counselors in l953 by a group of Realtors, which affiliated itself with the National Association Realtors in l954. This society was founded for the purpose of meeting the public need for competent, disinterested, and In recognizing its obligations to the public, this society of counselors invited into its membership only Realtors who have demonstrated their integrity and are qualified by experience, training, and knowledge to develop and express sound judgment on diversified problems in real estate business. In addition, the members subscribe to and pledge themselves to abide by the society’s In the Philippines, the development and recognition of the professional consulting practice may have been inspired by the U.S. experience, with the organization of the Philippine Association of Realtors’ Boards (PAREB) in 1960, and of the Institute of Philippine Real Estate Consultants (IPREC) in 1976 as an affiliate. This development of the practice was later on supplemented by There is one significant difference, though, between the U.S. practice and that of the Philippines: the Philippine consulting practice is subject to licensing regulations, while that of the U.S. counterpart is generally not. REAL ESTATE CONSULTING RELATIONSHIP WITH AND AS DISTINGUISHED FROM OTHER REAL ESTATE SERVICE PRACTICES Consulting is the giving of objective and independent expert advice to a client, frequently before decision is made concerning a real estate matter. Such advice is systematically researched and validated, even to the extent of engaging the services of other specialists. The relationship between the consultant and the client is similar to that of the CPA or lawyer and his client. The consultant, with his broad experience and knowledge in The consultant is not in competition with the broker, appraiser, property manager, or with other realty specialists. The consultant is in fact usually himself an expert in one or more such service practices, but he recognizes that his relationship with the client as broker working for a commission, as an appraiser bound to an objective opinion of value, or as a property manager interested in retaining management of the client’s The consultant’s relationship with his client tends to be more confidential and professional than that of the other real estate practitioners. Realty consulting is for persons who will approach the service on a professional basis. RELATIONSHIP OF VALUATION TO CONSULTING Valuation studies are primarily microeconomic analyses because they focus on valuing identified interests in specified real estate as of a given date. On the other hand, consulting may include macroeconomic analyses, microeconomic analyses, or a combination of both. Just as appraisers must distinguish between valuation and consulting works, consultants must also distinguish between market value and investment value. Market value is the value in the marketplace. Investment value is the specific value of goods or services to a particular investor or class of investors based on individual investment
