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30 Cards in this Set
- Front
- Back
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WHAT IS MARKET VALUE ?
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MARKET VALUE IS THE EXPECTED PRICE IN AN ARM'S LENGTH TRANSACTION.
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TRANSACTIONS THAT ARE NOT ARM'S LENGTH IS CONSIDERED?
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DISTORTED.
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WHAT IS INEVESTMENT VALUE ?
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INVESTMENT VALUE IS THE SPECIFIC VALUE OF AN INVESTMENT BASED ON THE SPECIFIC NEEDS OF A PARTICULAR INVESTOR.
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WHAT IS USE VALUE ?
(VALUE IN USE ) |
VALUE IN USE IS THE OWNER-USER BASED VALUE OF A SPECIAL PURPOSE PROPERTY SUCH AS A HOSPITAL.
(COST APPROACH IS THE EFFECTIVE METHOD) |
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WHAT IS ASSESSED VALUE ?
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ASSESSED VALUE IS THE VALUE ESTABLISHED FOR AD VALOREM TAX PURPOSES.
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WHAT IS INSURABLE VALUE ?
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INSURABLE VALUE IS THE PORTION OF ASSET VALUE RECOGNIZED UNDER THE PROVISIONS OF A LOSS INSURANCE POLICY.
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WHAT IS GOING CONCERN VALUE ?
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GOING CONCERN VALUE IS THE VALUE OF A BUSINESS CONSIDERED SEPERATE FROM THE REAL ESTATE.
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WHAT IS LIQUIDATION VALUE ?
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LIQUIDATION VALUE IS THE VALUE BASED ON A QUICK SALE OR LESS THAN ADEQUATE EXPOSURE ON THE OPEN MARKET.
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WHAT ARE THE 12 ECONOMIC PRINCIPLES ?
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ABSORPTION, ANTICIPATION, BALANCE, CONFORMITY, COMPETITION, CONSISTENT USE,CONTRIBUTION, OPPORTUNITY COST, SUPPY AND DEMAND, SURPLUS PRODUCTIVITY, AND UTILITY.
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WHAT IS ABSORPTION ?
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ABSORPTION IS THE RATE AT WHICH A PARTICULAR TYPE OF PROPERTY WILL BE SOLD OR LEASED EACH YEAR.
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WHAT IS ANTICIPATION ?
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VALUE TODAY IS CREATED BY THE ANTICIPATION OF BENEFITS TO BE DERIVED IN THE FUTURE.
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WHAT IS BALANCE ?
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BALANCE FEATURES A REASONABLE DEGREE OF SIMILARITY IN ARCHITECTURE, VALUE, INFLUENCE OF POLLUTION AND SERVICES AVAILABLE.
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WHAT IS CONFORMITY ?
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CONFORMITY EXISTS WHEN A PROPERTY IS NEITHER OVER-IMPROVED NOR UNDER-IMPROVED IN RELATIONSHIP TO ITS SURROUNDING.
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WHAT IS PRINCIPLE OF REGRESSION ? (CONFORMITY)
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PRINCIPLE OF REGRESSION STATES THAT THE VALUE OF AN OVER-IMPROVED PROPERTY DECLINES TOWARDS ITS SURROUNDINGS.
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WHAT IS THE PRINCIPLE OF PROGRESSION ? (CONFORMITY)
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PRINCIPLE OF PROGRESSION STATES THAT THE VALUE OF AN UNDER-IMPROVED PROPERTY INCREASES TOWARDS ITS SURROUNDINGS.
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WHAT IS COMPETITION ?
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COMPETITION IS THE ACTIVE DEMAND BY TWO OR MORE MARKET PARTICIPANTS FOR AN ITEM IN SHORT SUPPLY. INCREASED COMPETITION TENDS TO REDUCE EXCESS PROFITS.
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WHAT IS CONSISTENT USE ?
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CONSISTENT USE MEANS THAT IMPROVED LAND MUST BE VALUED FOR THE SAME USE AS ITS EXISTING IMPROVEMENTS.
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WHAT IS CONTRIBUTION ?
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THE VALUE OF A PARTICULAR COMPONENT IS MEASURED IN TERMS OF ITS CONTRIBUTION TO THE VALUE OF THE WHOLE PROPERTY. CONTRIBUTION IS ALSO REFERRED TO AS INCREASING OR DECREASING RETURNS.
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WHAT IS OPPURTUNITY COST ?
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OPPURTUNITY COST IS THE COST OF PASSING UP AN OPPORTUNITY OR THE COST OF OPTIONS FORGONE.
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WHAT IS SUBSTITUTION ?
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IF SEVERAL SIMILAR PROPERTIES ARE AVAILABLE, THE LOWEST PRICED WILL ATTRACT THE GREATEST DEMAND.
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WHAT IS SUPPLY AND DEMAND ?
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PRICES VARY DIRECTLY WITH DEMAND AND INVERSLY WITH SUPPLY.
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WHAT IS SURPLUS PRODUCTIVITY ?
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SURPLUS PRODUCITIVTY IS THE NET INCOME THAT REMAINS AFTER THE COST OF LABOR, CAPITAL, AND COORDINATION HAVE BEEN PAID.
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WHAT IS UTILITY ?
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UTILITY IS A MEASURE OF USEFULNESS OF A PROPERTY.
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WHAT ARE THE 4 MAJOR FACTORS THAT INFLUENCE VALUE ?
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SOCIAL FORCES, ECONOMIC FORCES OR CONDITIONS, GOVERNMENT FORCES OR CONTROLS, AND ENVIROMENTAL OR GEOGRAPHIC CONDITIONS.
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WHAT ARE SOCIAL FORCES ?
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SOCIAL FORCES ARE THE DEMOGRAPHICS. POPULATION, RATE OF FAMILY FORMATIONS/DISSOLUTIONS.
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WHAT ARE ECONOMIC FORCES ?
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ECONOMIC FORCES ARE FACTORS THAT AFFECT PURCHASING POWER. WAGE LEVELS, ECONOMIC BASE, AVAILABILITY OF CREDIT.
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WHAT ARE GOVERNMENT FORCES ?
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GOVERNMENT FORCES INVOLVE POLITICAL INFLUENCE ON THE MARKET. TAXES, PUBLIC SERVICES,LAWS.
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WHAT ARE ENVIROMENTAL CONDITIONS ?
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ENVIROMENTAL CONDITIONS ARE GEOGRAPHIC OF PHYSICAL FACTORS THAT AFFECT THE DESIRABILITY OF A PROPERTY OR COMMUNITY. WEATHER, VIEW, LOCATION, TOPOGRAPHY.
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WHAT IS MONEY MARKET ?
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MONEY MARKET ARE INVESTMENTS IN SHORT-TERM FINIANCIAL INSTRUMENTS. TREASURY BILLS/NOTES, CERTIFICATES OF DEPOSIT, GOVERNMENT SECURITIES.
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WHAT IS CAPITAL MARKET ?
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CAPITAL MARKET ARE INVESTMENTS IN SHORT-TERM FINANCIAL INSTRUMENTS. LAND CONTRACTS, STOCKS AND BONDS, MORTGAGES.
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