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23 Cards in this Set

  • Front
  • Back
Anticipation
value = present worth of future benefits
Balance
value is created when elements are in equilibrium
Change
cause & effect between forces that influence value
Competition
interactive efforts of two or more potential sellers or
Conformity
value is maximized when property in an area conform with the demands of the market
Consistent use
value the site as though vacant, & available to be put to its HBU & then value the improvements according to their value to that use (market value appraisals)
Contribution
worth of item is equal to contribution to whole value, not cost of item
Elasticity of demand
the changing relationship between demand & price; shifts in the demand curve
Externalities
value is positively and negatively impacted on outside forces from a property
HBU
the use that produces the highest value
HBU of land as though vacant
the use that represents the highest value for a site as if vacant (regardless of the improvements on the site)
HBU of land as improved
the use that produces the highest value for the property, overall, regardless of the HBU
Interim use
a temporary use where the HBU of the site as vacant does not match with the HBU as improved
Law of increasing & decreasing returns
adding elements of agents of production increase net income (or rate of return) until a certain point then income declines (or rate of return declines)
Location
the siting of property relative to other support. Real estate is fixed in location & therefore dependent on its surroundings
Opportunity cost
cost of options foregone, or not chosen
Point of decreasing returns
when adding agents of production cause a decrease in net income or rate of return
Principle of progression
an inferior property is brougt up in value because it is situated near a better property
Principle of regression
a superior property is brought down in value because it is situated near an inferior property
Substitution
among similar competing goods, the lowest price attracts the greatest demand
Supply & demand
price varies inversely, but not necessarily proportionally with demand and directly, but not necessarily proportionally, with supply
Surplus productivity
the net income that accrues to the land after deducting all other agents of production
Forces that influence property values
1. Social
2. Economic
3. Governmental
4. Environmental