Value Framework And Principals

Front 1

__________ is defined as the sacrifice made in acquiring property

Back 1

Cost

Front 2

In order for a property to have value, it must have

Back 2

Scarcity, purchasing power, utility and desirability

Hint 2

Spud

Front 3

What is the right of Government to regulate property to protect public health, safety and welfare

Back 3

Police Power

Front 4

The principle of _______ is the basis of the three approaches to value

Back 4

Substitution

Front 5

Highest and best use must be _______ and ______use , and is determined by the _______

Back 5

Profitable and legal. Market

Front 6

A small house surrounded by larger houses may have a higher value than if it were surrounded by smaller houses. This demonstrates the principle of ___________.

Back 6

Progression

Front 7

That market value is the present worth of all anticipated future benefits reflects the principle of________

Back 7

Anticipation

Front 8

That the maximum market value is reached when a reasonable degree of economic and social homogeneity exists reflects the principle of

Back 8

Balance

Front 9

That the maximum market value is reached when a reasonable degree of economic and social homogeneity exists reflects the principle of

Back 9

Balance

Front 10

What is the highest degree of ownership

Back 10

Fee simple title

Front 11

What are the Private Limitations of property

Back 11

Leases, Liens, co-owners rights, condos and subdivisions, CCR(covenants,conditions and restrictions), mortgages, easements and rights of way

Front 12

The three approaches to value should be

Back 12

Considered in every appraisal

Front 13

An effective tax rate is determined by

Back 13

Multiplying the mill rate by the assessment level(ratio)

Front 14

Factors that influence value are

Back 14

Scarcity, purchase power, utility and desirability

Hint 14

SPUD

Front 15

To achieve maximum value, land must be put to a use which is reasonably similar to the standards in the area in which it is located

Back 15

Conformity

Front 16

Zoning is an example of

Back 16

Police Power

Front 17

What is not and example of an economic principle

Back 17

Correlation

Front 18

What does the bundle of rights refer to

Back 18

Various rights attached to ownership

Front 19

The rights to regulate the use of property for the public welfare in the areas of safety, health, morals zoning, building codes, and traffic and sanitary regulations

Back 19

Police Power

Front 20

What is the purpose of an appraisal report

Back 20

Substantiate an estimate of value

Front 21

A sealed instrument used to convey real estate

Back 21

Deed

Front 22

The assessor is responsible for

Back 22

Discovering, list and valuing property

Front 23

The appraiser does what

Back 23

Estimates value

Front 24

The most probable price expressed in terms of money that a property would bring if exposed to the market for a reasonable time. Both buyer and seller are informed of all the issues to which a property may be put. A willing buyer and a willing seller, with no advantage being taken by either.

Back 24

Market Value

Front 25

The four forces to be analyzed in evaluating a neighborhood are

Back 25

Physical, economic , government and social

Front 26

All data must be reflected by this to be useful to an assessor

Back 26

Local market

Front 27

A_____ is a series of changes brought about by a chain of causes and effects

Back 27

Trend

Front 28

The most important physical factor affecting real estate is

Back 28

Location

Front 29

What are three types of boundaries used in defining neighborhoods

Back 29

Man made, political and natural

Front 30

A prime consideration in analyzing commercial area I the amount of

Back 30

Parking spaces available

Front 31

True or false

Back 31

Depth increases = value decreases. “Depth is cheaper”

Hint 31

True

Front 32

4,3,2,1. The first 25 ft. Is 40% the 2nd 25 ft. Is 30% the 3rd 25 ft. Is 20% and the 4th 25 feet is 10%. True or false

Back 32

True

Front 33

Correlation involves

A. Averaging all estimates derived, giving equal weight

B. Averaging all estimates derived, weighing each according to its importance

C. placing Primary emphasis on the estimate deemed most reliable by the appraiser , as related to the appraisal problem

D. Re-calculation of all previous analyses and estimates

Back 33

C. Placing primary emphasis on the estimate deemed most reliable by the appraiser, as related to the appraisal problem

Front 34

The most important factor influencing urban land value is generally

Back 34

Location

Front 35

The process of combining 2 or more sites to develop one site having greater utility and unit value than when each is separately considers is known as

Back 35

Plottage

Front 36

Adjacent property owners and /or features of the terrain

Back 36

Metes and bounds

Front 37

Market value is the present worth of all anticipated future benefits derived from property

Back 37

Anticipation

Hint 37

12 economic principles of value

Front 38

Market value is the present worth of all anticipated future benefits derived from property

Back 38

Anticipation

Hint 38

12 economic principles of value

Front 39

Indicates maximum market value is reached when the complimentary uses of the land attain an equilibrium

Back 39

Balance

Hint 39

When the 4 agents of production-labor, coordination or management, capital and land attain state of equilibrium

Front 40

Market value is never constant , because economics, social & Governmental forces are at work to change the property and its environment

Back 40

Change

Front 41

Market value is never constant , because economics, social & Governmental forces are at work to change the property and its environment

Back 41

Change

Front 42

When substantial profits are made, competition is created-excess profit breeds ruinous competition.

Back 42

Competition

Front 43

Maximum market value is reached when a reasonable degree of homogeneity is expected in the foreseeable future

Back 43

Conformity

Front 44

The property must be valued with a single use for the entire property. It is improper to value property on the basis of one use for the land an another for the improvements.

Back 44

Consistent use

Front 45

Value of a lesser object is enhanced by association with better objects of the same type.

Back 45

Progression

Front 46

When there are dissimilar properties within the same general classification and in the same area, the better property will be adversely affected.

Back 46

Regression

Front 47

The value of one agent of production(or the property component) depends upon its contribution to the whole. Cost does not necessarily equal value. (Basis for the adjustment process of the comparative sales approach to value)

Back 47

Contribution

Front 48

When successive increments of one agent of production are added to fixed amounts of the other agents, future net benefits(income or amenities) will increase up to a certain point(point of decreasing returns) after which successive increments will decrease future net benefits.

Back 48

Increasing & decreasing returns

Front 49

Market value tends to be set by the cost of acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered in making the substitution(basis of the three approaches to value)

Back 49

Substitution

Front 50

Market value is determined by the interaction of the forces of supply and demand.

Back 50

Supply & Demand

Front 51

The net income remaining after the first 3 agents of production, labor,coordination(management), and capital has been paid is considered surplus productivity

Back 51

Surplus Productivity

Front 52

Agents of production

Back 52

Land, labor, capital and management

Front 53

Methods of Land Valuation

Back 53

Direct Market comparison/sales comparison

Abstraction, Allocation and Land development

Front 54

4 Criteria of Highest and Best Use

Back 54

Have to be done in order

Legally permissible

Physically possible

Financially feasible

Maximally Productive