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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

Market values

Change frequently because of changing levels of supply and demand and other economic factors

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

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

Appraisal Concepts and property value

Principle of substitution. Principle of Conformity. Concept of highest and best use

Principle of substitution

When Buyers are presented with several similar, equally desirable properties, they will choose a lowest price option

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

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

Three approaches by which to conduct a valuation

Cost approach. Sales comparison approach. Income approach

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

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

Two types of sales comparison approach for making adjustments

The abstraction method. The paired sales method

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.

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

The income approach

The value of a property is determined by its earning power or ability to generate benefits

Types of appraisal reports

Self contained appraisal reports. Some reappraisal ports. Restricted-use appraisal reports