Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
What are the 4 characteristics of value?
|
DUST
Demand Utility Scarcity Transferability |
|
|
3 approaches to appraisal?
|
Market Data Approach
Income Approach Cost Approach |
|
|
What is the difference in the market, income, and data approach?
|
Market data=residential
income=commercial cost=unique or no comparables |
|
|
The conversion of an income stream into determining value?
|
capitalization
|
|
|
Does cap rate, and market value have an inverse relationship?
|
yes, one increases, other decreases
|
|
|
What is a GRM?
|
factor based on location and
used on residential rent - a price per rent. when multiplied by MONTHLY rent gives an estimate of value price/rent=GRM |
|
|
What is GIM
|
same as GRM but uses annual rent, used for commercial
|
|
|
What is cost approach?
|
For unique properties
land value+building replacement cost-depreciation=value |
|
|
In cost approach what are 3 types of depreciation?
|
Physical - easy
Functional - harder Economic - incurable |
|
|
Another name for economic obsolence?
|
external obsolence
|
|
|
What is progression?
|
higher value property around yours increases its value, opposite is regression
|
|
|
How does appraiser measure square footage?
|
exterior walls, never include unfinished space
|
|
|
Why do lenders require an appraisal?
|
to determine collateral
|
|
|
What is MAI?
|
Member Appraisal Institute
|
|
|
Difference in assemblage and plottage
|
mean same but assemblage is verb of combining properties, plottage is describing finished to increase usability and price
|
|
|
Appraiser measuring gross area?
|
under roof, square footage is exterior walls+
|
