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