Re Valuation And Market Analysis

Front 1

As the value of property increases, typically the value of the dollar

Back 1

Decreases -in other words, if the prices go up, your dollar buys less

Front 2

If an appraiser finds indications of soil problems he would normally recommend

Back 2

Soil inspection as a condition of the appraisal and appraisal is only valid for the date the appraiser sites in the report

Front 3

Economic obsolescence involves depreciation based on what factors

Back 3

Outside the property (i.e. the city widens a street decreasing the size of the property)

Front 4

What is the most detailed and complete report and appraisal would issue

Back 4

Narrative form

Front 5

The best method for estimating the value of a house to be built on vacant land

Back 5

Cost approach

Front 6

An appraiser calculates the accured depreciation of improvements, land is not depreciated

Back 6

Cost approach

Front 7

Determine the cost of new construction is the most difficult but most accurate method. It details all raw materials and installation cost

Back 7

Quantity survey method

Front 8

Method determining the replacement cost is the easiest at least accurate method, if the original cost of the construction is known. The appraiser multiplies the original cost of the subject property by a factor that represents the percentage change in construction cost between the time the construction was built and the present

Back 8

Index method

Front 9

If the original cost of the structure is not known what method is easiest but least accurate method

Back 9

Square-foot method

Front 10

Capitalization of net income technique used to estimate the value of land, not the building value

Back 10

Land residual technique

Front 11

Another appraisal method where the appraisal estimates the land value of improved property by deducting the value of any site improvements

Back 11

Abstraction

Front 12

The present highest and best use when a change in highest and best use is in the foreseeable future. (Example - a Goldmine where the gold is running out

Back 12

Interim use

Front 13

An unbiased estimate or opinion of the property value given date

Back 13

Appraisal

Front 14

What is created to identify the range of values for particular property of identifying current listed properties (the competition) recently sold and closed properties and expired listings

Back 14

(CMA) comparative market analysis

Front 15

Present worth of rights to future benefits that come from property ownership

Back 15

Value

Front 16

The price a property would bring it freely offered on the open market, with both a willing buyer and a willing seller

Back 16

Fairmarket value

Front 17

Multiple offers in a short market time indicates a

Back 17

Sellers market

Front 18

To have an oversupply of inventory is a

Back 18

Buyers market

Front 19

The price at which the property changes hands between a willing buyer and seller

Back 19

Market price

Front 20

Market value is sometimes called the

Back 20

Objective value, since it may be determined by actual data

Front 21

Is the usefulness of the property to its owner

Back 21

Utility value

Front 22

Is a likely price that a property would bring in a forced sale (forclosure or tax sale)

Back 22

Liquidation value

Front 23

What are the four elements to create value

Back 23

Demand, utility, scarcity, and transferability (DUST)

Front 24

Also called external characteristics, these characteristics include quality of conveyances such as availability of schools, shopping, public transportation, churches, and similarity of land-use

Back 24

Physical characteristics

Front 25

What may be the most important factor influencing value, as far as highest and best use

Back 25

Location

Front 26

Includes building codes, zoning laws, public health measures, fire regulations, rent controls, and pending legislation

Back 26

Political forces

Front 27

Increasing supply or decreasing demand will reduce the price in the market

Back 27

Principle of supply and demand

Front 28

Is how much of a product is desired by buyers

Back 28

Demand

Front 29

Is how much of the product the market can offer

Back 29

Supply

Front 30

Values set by the cost of getting an equally desirable substitute

Back 30

Principle of substitution

Front 31

Probable future benefits to be derived from a property will increase the value

Back 31

Principle of anticipation

Front 32

An appraiser must be aware of trends that affect the value of real estate

Back 32

Principle of change

Front 33

When land uses are compatible and homes are similar in design size, the maximum value is realized

Back 33

Principle of conformity

Front 34

A lesser value property will be worth more because of the presence of greater value properties nearby

Back 34

Principle of progression

Front 35

A greater value property will be worth less because of the presence of lower value properties nearby

Back 35

Principle of regression

Front 36

One that is not the highest and best use for the site on which is placed by reason of excess size or cost

Back 36

Overimprovement

Front 37

The worth of an improvement and what it adds to the entire property's market value, regardless of actual cost of improvement

Back 37

Principles of contribution

Front 38

When contrasting, opposing, or interacting elements are in balance in a neighborhood or area, value is created

Back 38

Principle of balance

Front 39

Summary appraisal report

Back 39

Uniform residential appraisal report most commonly used

Front 40

What is the most comprehensive and detailed appraisal

Back 40

Self-contained appraisal report

Front 41

The use of report is limited to the client

Back 41

Restricted use appraisal report

Front 42

What approach uses the principle of substitution to compare recent sales and listings of similar properties in the area

Back 42

Sales comparison or market data approach

Front 43

What approach is used primarily for residential properties

Back 43

Sales comparison

Front 44

Properties similar to the subject property that have sold within the previous six months

Back 44

Comparables

Front 45

What approach is land and improvements valued separately

Back 45

Cost approach

Front 46

What approach takes that reproduction or replacement cost of the improvements my secure depreciation plus the land value

Back 46

Cost approach

Front 47

What approach used primarily for new buildings, special-purpose buildings, or properties with few or no comparables

Back 47

Cost approach

Front 48

What are the three appraisal approaches

Back 48

Sales comparison approach, cost approach, and income approach

Front 49

Difference between the cost to replace the property and the properties current appraised value

Back 49

Accrued depreciation

Front 50

What method is the most common method used to calculate accured depreciation

Back 50

Straight-line (age-life)

Front 51

Estimates the present worth of future benefits by capitalizing the income stream of the property

Back 51

Income approach

Front 52

When actually paid by tenant for use on the premises and may or may not be the same as economic rent

Back 52

Contract rent

Front 53

When the property with command in an open market

Back 53

Economic rent

Front 54

All of income a property should produce

Back 54

Scheduled gross income

Front 55

Ordinary and necessary costs to the operating income producing property, does not include mortgage interest or IRS depreciation

Back 55

Operating expenses

Front 56

Income available after paying operating expenses, but before paying debt

Back 56

Net operating income

Front 57

Is the conversion of income stream into an indication of value

Back 57

Capitalization

Front 58

Annual rate of return produced by income producing property or the desired rate of return by an investor

Back 58

Capitalization rate (CAP)

Front 59

Is a number that, when multiplied by the income, is an indicator of value

Back 59

Multiplier (the values based on income without expenses being deducted)

Front 60

When multiplied by the monthly gross rental income, will give an indication of the properties market value

Back 60

Gross rent multiplier (GRM)

Front 61

When multiplied by the annual gross income from all sources, given indication of the properties market value. The gross income could include parking, laundry, or fees for other services offered

Back 61

Gross income multiplier (GIM)