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16 Cards in this Set
- Front
- Back
Assessed value |
Refers to the value of a property as of a certain date and is the value upon which I know property taxes are based |
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Market values |
Change frequently because of changing levels of supply and demand and other economic factors |
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Real estate appraiser |
Specializes in a particular type of real estate. Performance appraisals on individual properties rather than a neighborhood. Establishes value primarily for the purpose of a loan or purchase |
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A property assessor |
Works for a municipal government. Performance evaluations that apply to entire neighborhoods rather than individual properties. Establishes a value for the purpose of tax |
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Appraisal Concepts and property value |
Principle of substitution. Principle of Conformity. Concept of highest and best use |
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Principle of substitution |
When Buyers are presented with several similar, equally desirable properties, they will choose a lowest price option |
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Principle of conformity |
Property values reflect the degree of sameness in architectural style and land use compatible in a given area. If I'll homes look the same then each will have a price close to the maximum value for that market |
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Highest and best use |
The use of a particular piece of land that will support the highest value and will produce the greatest net return over a period Of time |
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Three approaches by which to conduct a valuation |
Cost approach. Sales comparison approach. Income approach |
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Cost approach to valuation |
Based on the theory that uninformed buyer will not pay more for used house then what it would cost to buy a similar site and construct a similar House of equal utility |
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Sales comparison approach to valuation |
Each component of a property contributes to its overall value. A real estate appraiser looks at local sales data to find three or more sold properties that are comparable to the subject property |
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Two types of sales comparison approach for making adjustments |
The abstraction method. The paired sales method |
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The abstraction method |
Involves subtracting the market values of different components of a property from the sale price of the property until the residual is the single, isolated component for which you want to know the value. |
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Paired sales method of |
Considered a less accurate method of comparison than abstraction. Assumes that if two properties are Donegal except for one feature than any difference in price between the two is attributable to that feauture |
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The income approach |
The value of a property is determined by its earning power or ability to generate benefits |
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Types of appraisal reports |
Self contained appraisal reports. Some reappraisal ports. Restricted-use appraisal reports |