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20 Cards in this Set
- Front
- Back
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Reconciliation
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Combining all three appraisal approaches to determine an indicated value
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Diminishing returns
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Results from building in excess of the value of the neighborhood
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Substitution
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What principle appraiser uses to determine maximum value by comparing equally desirable substitutes
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Scarcity
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Essential to creating value
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Capitalization
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The process when net income is divided by an investor's desired percent of return
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Assemblage
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The act of combining contiguous property to increase the value of the combined property
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Physical deterioration
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A cracked foundation wall
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Amenities
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Value is enhanced by a home's proximity to a beautifuly shaded park
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External obsolescence
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Diminished value due to airplane landing routes over a neighborhood
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Fuctional obsolescence
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A three-bedroom two-story home with only one bath
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CMA
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Reporting tool to help agents determine a price range for a property
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URAR
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The Universal Appraisal Report
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Progression
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Phenomenon that happens when buying the least expensive home in the most expensive neighborhood
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Arm's length or most
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Sales not influenced by unusual circumstances used to determine the market value of a property
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Land
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In the cost approach this is added back after subtracting depreciation from replacement cost new
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Comparables
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A name for sold homes used in the CMA
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Plottage
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The theory that greater utilization or efficiency of contiguous property increases value
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GIM
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Sold price divided by annual income
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Contribution
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Dollar value of any housing component measured probable sales price by its worth using "paired sales" in an open market
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GRM
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Sold price divided by monthly rents
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