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70 Cards in this Set
- Front
- Back
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Absorption rate
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the rate property will be leased or sold
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Accelerated cost recovery system (ACRS)
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from the IRS code, the depreciating of improvements at a greater rate than straight-line according to the law & a schedule or formula
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Adjustment grid
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The sales that are different from the subject are adjusted; inferior sales's features are adjusted upward (+) & superior sale's features are adjusted downward (-)
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Ad valorem tax
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"according to value"; real estate taxes based upon valuation
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Arm's length transaction
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a transaction where both buyer and seller were acting to maximize and there was no duress
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Balance of trade
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imports versus exports of goods & services in an economy
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Building permit
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a governmental granting of the right to build or maintain occupancy of a building improvement
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Building start
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improvements where construction has begun; used as a part of the calculation of future supply or inventory
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Business cycle
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fluctuations of business from bust (recession or depression) to recovery to boom & back to bust
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Capitalization rate
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an income rate that represents the relationship between some income and a sale price or value
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Competitive supply
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the supply that effectively competes with an identified property or market
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Consideration
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money or "thing of value" paid for a product or service
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Consumer Price Index (CPI)
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a governmental index used to measure price changes over time
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Cost-estimating manual
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a compilation of cost surveys used for estimating costs
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Data array grid
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a type of market data grid that summarizes important comparable factors in summary form; it is used for display not adjustment
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Debt service
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the money paid towards borrowed capital
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Demand
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desire & ability to purchase goods/services
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Depreciation
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loss in value, generally to improvements
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Disposable income
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personal income that remains after deducting income taxes
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Economic base
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economic activiy that attracts income from outside its community borders
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Economic base analysis
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analyzing the goods or services that an economy exports (that imports $ into an area from the outside)
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Economic indicator
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rates or indexes that measure changes over time
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Economic life
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the length of time an improvement should have a useful life from the standpoint of contributing to the site economically, as opposed to physical life which is the time an improvement could physically last
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Electronic data interchange (EDI)
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the electronic exchange of information from standard forms by various entities;
used with standardized residential appraisal formats |
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Field inspection
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collecting primary data in an area or with a subject property, including physically inspecting the subject and/or comparables
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Forecasting
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today's surveyed or measured expectation of a future event; or the future prediction of an outcome or range of possible outcomes
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General data
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information on social, economic, governmental, & environmental forces that affect value; all data that is not specific
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Geographic Informational System (GIS)
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a mapping & data base combination where data is overlaid on a map grid
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Gross domestic product (GDP)
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the $ value of all goods & services in a nation, including private, government & foreign owned corporations production before deducting the consumption of durable goods; formerly GNP
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Household
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person(s) who occupy a group of rooms or single room, that constitute one housing unit
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Household formation
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# of new groups or individual persons occupying a unit
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Improvement cost data
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information on cost of building or other improvements
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Income & expense data
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information on income and expenses for a particular property or property type
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Listing
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information on a property on the market for lease or sale
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Macroeconomic factor
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a factor concerning broad areas such as cities or regions
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Market data grid
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the organization of data from a market or comparable properties summarized generally to draw conclusions or judements from; 2 types include data array grid & adjustment grid
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Microeconomic factor
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a factor concerning particular real estate or defined smaller neighborhood
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Modified accelerated cost recovery system (MACRS)
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from Tax Reform Act of 1986 where depreciable assets are recovered over a set schedule (longer than the ARCS of 1981 Act)
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Nominal price
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prices unadjusted form inflation
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Offering
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a property on the market for lease or sale
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Operating expense
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an expense related to the operation of a property which is divided into fixed, variable, and some times an allowance for replacements
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Plat map
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a map showing the ownership and boundaries &/or sizes of tracts in an area
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Price level
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average of prices
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Prime interest rate
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the rate charged by lending institutions, on a short-term basis, unsecured to their best customers
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Proprietary data
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secondary data compiled by research firms
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Purchasing power
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the ability of $s to buy a certain amount of goods or services; the ability & willingness to buy certain goods or services
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Real price
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nominal price minus inflation
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School tax
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tax earmarked for education
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Sitting factor
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origin or reason for settlement
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Specific data
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information on the subject & comparables
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Topography Integrated Geographic Encoding & Referencing (TIGER) datafiles
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a GIS system of data at a local level established by the 1990 census; contains data concerning traffic, land use & population; it integrates a spreadsheet with mapping
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Transactional data
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sales, rentals & other contractual information between parties
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Unemployment rate
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persons unemployed & desiring work divided by total work force
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Units of comparison
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how sale prices or rentals are analyzed; may be per sf, per unit, overall (such as per house or lot), per economic unit (income psf, etc.), or other means
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Vacancy & collection loss
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an allowance for loss from potential gross income at 100% occupancy to account for times of nonpayment of rent, often because of turnover or lease-up periods
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Volume of retail sales
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how much sales as measured in $s
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Wage level
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the average that a trade or job pays
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Local market considerations
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1. Demographics
2. Government regulations & social attitudes 3. Purchasing power 4. Price levels 5. Building fluctuations 6. Building costs 7. Taxes 8. Financing |
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Sources of specific data
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1. Public records
2. Published news 3. Realtors, appraisers, managers, & bankers 4. Multiple listing services 5. Listings & offers 6. Electronic data interchange (EDI) |
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Single-family residences
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Units of comparison:
Entire property GLA |
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Vacant land
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Units of comparison:
Entire property Per acre SF Per potential lot Building units per acre |
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Agricultural properties
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Unit of comparison:
Acreage Animal unit (AU) - pasture Thousand board feet (MBF) - timber |
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Apartments
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Unit of comparison:
SF of living area # of apartments # of rooms |
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Warehouses
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Unit of comparison:
SF Cubic footage Doors/docks - terminals |
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Factories
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Unit of comparison:
SF Machine unit |
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Offices
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Unit of comparison:
SF of net rentable area SF of gross area - especially office condos, single-tenant & owner occupied |
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Hospitals
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Unit of comparison:
SF # of beds |
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Theatres
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Unit of comparison:
SF # of seats |
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Tax rate as % of market value
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= tax rate $ / (per $100 or $1,000) x assessment ratio
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5% tax rate
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= $50 per $1,000 valuation, or $5 per $100 valuation, or 50 mills
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