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70 Cards in this Set

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