50 Matching questions
- market value
- 4 agents of production
- reproduction costs
- cost approach
- commercial property value
- neighborhood lifecycles
- income approach
- variable expenses
- net operating income
- quantitative analysis
- economic principals of value
- sales comparison approach
- economic forces
- qualitative analysis
- fixed expenses
- external obsolescence
- supply and demand
- law of decreasing returns
- residential value
- economic characteristics of value
- reserves for replacements
- direct capitalization technique
- market theory of value
- CA: estimate cost of new improvements
- physical deterioration
- gross rent multiplier
- CA: estimate site value
- replacement costs
- law of increasing returns
- functional obsolescence
- a an item of physical deterioration where the cost to cure is equal to or less than the value added by curing.
- b evaluated by a direct capitalization technique
- c loss in value as a result of the passage of time or wasting away caused by the elements. deferred maintenance- can be curable or incurable. (physical depreciation)
- d expenses that must be paid that are not related to occupancy. (taxes, insurance)
- e an orderly process for analyzing the sales of similar properties in order to estimate the value of the subject property. appraiser uses data from actual market transactions
- f 1. physical and environmental forces
2. economic forces
3. governmental forces
4. social forces
- g 1.growth
4. revitalization (renewal)
- h when the total property value is equal to the sum of the site value, plus contribution of improvements. it assumes a hypothetical buyer considers producing a substitute residence that has the same utility as the subject property. typically for new structures or "no-market properties"
- i the development of an opinion of a defined type of value for particular property
- j an appraisal concept that states that a buyer will pay no more for a property than the cost of obtaining an equally desirable substitute. when an investor looks at cost of a new structure before buying one. The maximum value of property is limited.
- k capital, management, land and labor
- l an item is worth what it has to offer in real estate
- m comparing data on properties to derive specific numbers that can be applied to other properties in the same market (dollar adjustments, percentage adjustments)
- n comparing data on properties to derive relative comparisons between properties in the same market. derives value by determining which properties are superior and inferior to the subject.
- o the ability to transfer ownership. If ownership cannot be transferred, than value does not exist
- p an item of physical deterioration where the cost to cure is greater than the value added by the curing problem
- q determine the value of the land
- r the total satisfaction received from consuming a good or service. must meet a useful need
- s an appraisal principle that states the value of a property depends on the quantity and price of the property type available in the market, and on the number of market participants and price that they are willing to pay
- t rebuilding a house. measuring a build along its exterior foundation to determine gross square footage
- u the lack of sufficient supply
- v an appraisal concept that states that economies or diseconomies outside a property's boundaries may have a positive or negative effect on its value
- w states that the value is determined by the actions of buyers and sellers in the marketplace in response to the influences of supply and demand.
- x expenses that must be paid that are related to occupancy (maintenance, management)
- y make as a net profit (the company made $1 million dollars last year)
- z the added value of the additional feature or repair will contribute more to the value of the property than its original cost
- aa an appraisal principal that recognizes the fact that a property and its environment are always in transition and are impacted economic and social forces that are constantly at work
- ab property may increase or decrease due to some future benefit or detriment coming to the neighborhood
- ac as a result of assembling, the larger parcel generates a greater value
- ad a value concept that states that value is affected by the interaction of supply and demand in the market
- ae the desire for a good backed by the ability to pay for the good
- af a technique that reaches an opinion of value for property by taking the property's income and applying a rate.
- ag an appraisal principle that states that the more a property is in harmony with its surroundings, the greater the contributory value. often maximizes value.
- ah the primary method used to estimate the present value of properties the produce income. measures value through the eyes of the investor
- ai the most probably price in terms of cash that a property would bring in the open market within a reasonable time.standard value sought by appraisers and real estate professionals.
- aj expenses that relate to items that must be replaced more than once during a lifetime of a building. (heating and cooling units)
- ak estimated cost to construct, at current prices, a building with utility equivalent to building being appraised, using modern material and current standard designs and layout. (used most of the time for cost estimation)
- al a number that expresses the relationship between the sales price of a residential property and its gross monthly unfurnished rental.
- am a point when added value of another feature, or additional repair, will be less than the cost to accomplish that feature or repair.
- an a loss in value as a result of external conditions
locational: subject's proximity to a factory can cause loss of utility
economic: high unemployment or high interest rates
- ao estimated cost to construct, at current prices, an exact duplicate, or replica of the building being appraised, using same material construction standards, design, layout, and quality.
- ap combining of two or more adjacent parcels of land
- aq determined by using a gross rent multiplier method
- ar the conversion of income expectancy into a capital sum or property value
- as 1. demand
- at influence the market and cause adjustment and or correction in the marketplace
- au an appraisal principal that states that property value is created and maintained when contrasting, opposing or interacting elements are in state of equilibrium.
- av when more than once approach is used to determine the value of the subject property then the agent must decide which method provided the most reliable indicator of value
- aw a plot of land plus improvements that make it ready for use
- ax a loss in value as a result of the subject not performing the function for which is was intended. curable or incurable (functional depreciation)