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14 Cards in this Set
- Front
- Back
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Appraisal
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the estimate of the value of something
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Capitalize
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to convert future income to current value
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Comparables
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properties similar to the subject property that have sold recently
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Cost approach
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land value plus current construction costs minus depreciation
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Depreciation
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loss in value due to deterioration and obsolescence
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FIRREA
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the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
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Gross rent multiplier (GRM)
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a number that is multiplied by a property's gross rents to produce an estimate of the property's worth
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Highest and best use
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that use of a parcel of land that will produce the greatest current value
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Income approach
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a method of valuing a property based on the monetary returns it can be expected to produce
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Market comparison approach
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a method of valuing property based on recent sales of similar properties
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Market value
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the cash price that a willing buyer and a willing seller would agree upon, given reasonable exposure of the property to the marketplace, full information as to the potential uses of the property, and no undue compulsion to act
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Operating expenses
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expenditures necessary to maintain the production of income
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Scheduled gross (projected gross)
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the estimated rent a fully occupied property can be expected to produce on an annual basis
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USPAP
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the Uniform Standards of Professional Appraisal Practice
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