• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/26

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

26 Cards in this Set

  • Front
  • Back

Market Data Approach

used to appraise a single family home

Income Approach

used to appraise investment properties like apartment buildings

economic rent

rent that could be obtained if the unit were empty and available for rent.

Potential Gross Income

the rent that would be collected if every apartment were rented every month of the year.

Cost approach to appraising

Replacement cost minus Depreciation + Land = Value

Cost Approach

method that could be used to determine the replacement cost or reproductive cost

Physical Obsolescence

a result of normal wear and tear on the property

Functional Obsolescence

Insufficient electrical outlets is an example of:

Incurable depreciation

when the money invested to fix or cure the problem exceeds the increase in the property value

Straight-line method

investors can use to depreciate the value of their improvements.

Highest and best in use

Legal use that will yield the greatest return.

Substitution

states the maximum value for a property should not exceed the cost of purchasing an equal property


Contribution

this principle of appraising us used when an owner is considering adding a family room onto their house.

Anticipation

this principle of appraising analyzes the possibility of future benefit or determent of purchasing the property.

Substitution

The direct sales approach to appraisal is based on this principle of appraising

"pay a premium" for property

They are anticipating future benefit/ anticipation.

Supply and demand

When a large Print factory goes out of business and lays off employers,the value of properties in the area would decrease due to what

Principle of Conformity

The max value of a property is realized if the use of the property conforms to surrounding properties

Assemblage

the process of combining of two or more small tracts of land to create one tract.

Plottage value

The value that results from assemblage

the Law of decreasing returns

When adding improvements to a property does not produce an increase in property value

cost approach to appraising.
determine the replacement cost or reproductive cost. Index method
Incurable depreciation
money invested to fix or cure the problem exceeds the increase in the property value if the repair was made.
The direct sales or market data approach to appraising
to determine the value of a single family home or vacant land.
The principal of substitution
the maximum value for a property should not exceed the cost of purchasing an equally desirable property.
The direct sales approach to appraisal is based on what principle of appraising

The principal of Substitution