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69 Cards in this Set
- Front
- Back
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The goal of the appraiser is to determine... |
The market value, insurance value, salvage value, and/or the tax value of a property.
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CMA |
Competitive Market Analysis |
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Compensation of the appraiser is based on... |
time and effort, never on the established price of the property. |
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The first step in the appraisal process is... |
...to determine "why am I doing this"?
(Market value, insurance value, salvage value, or tax value) |
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Name the 4 appraiser's ground rules. |
1. Payment must be cash or equivalent. 2. All parties must be without influence, menace, or duress. 3. Property must be marketed for a reasonable time in an open market. 4. All parties must be well-informed. |
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10 Principals of Real Estate Value.
1. Highest and Best Use |
the possible use of a property that would produce the greatest net income and thereby develop the highest value
(a small house surrounded by offices...) |
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10 Principals of Real Estate Value.
2. Substitution |
the maximum value of a property tends to be set by the cost of purchasing an equally desirable, equally valuable substitute property
(comparison shopping) |
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10 Principals of Real Estate Value.
3. The Law of Supply and Demand |
the value of a property increases when the supply is short and decreases when there is too much.
(duh) |
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10 Principals of Real Estate Value.
4. Conformity |
the more a property is in harmony with the surrounding properties, the greater the contributory value.
(a million dollar home amidst $100k homes will not return the investment... $100k home amidst million dollar homes will benefit) |
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10 Principals of Real Estate Value.
5. Regression and Progression |
regression and progression occurs between dissimilar properties.
(a better quality property is affected adversely by the presence of the lesser quality property, and a lesser house will benefit from a larger house.) |
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10 Principals of Real Estate Value.
6. Anticipation |
property can increase or decrease in value in expectation of something in the future.
(a person discovers that an airport is going to be built in an area and buys the land in "anticipation" of a future value.)
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10 Principals of Real Estate Value.
7. Contribution |
the value of any component of a property is what it gives to the value of the whole, or what its absence detracts from the whole.
(a fully remodeled kitchen adds to the value of a property, a kitchen that has not been remodeled would subtract from value.) |
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10 Principals of Real Estate Value.
8. Assemblage |
the combining of two or more adjoining lots into one larger tract to increase their total value.
(buying lots of plots, then "assembling" those plots into one large plot to increase value.) |
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10 Principals of Real Estate Value.
9. Competition |
when one business attracts another business of similar type
(too much competition is bad, but in large cities and shopping centers, competition benefits the businesses involved by attracting clients.) |
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10 Principals of Real Estate Value.
10. Change |
real property is constantly changing- expanded, stabilizing, declining or being reborn. |
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Name the 3 types of depreciation |
1. Physical deterioration 2. Functional obsolescence 3. Economic (external) obsolescence |
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Explain federal taxes on real property. |
there are none, the constitution prohibits it.
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ad valorem |
assessed value
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assessment ratio (tax) |
the assessed tax is based on a % of the property's FMV. |
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tax base |
total appraised value of all real property within an area's boundaries. |
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tax base total comes from assessed values, minus what? |
exceptions |
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What is a homestead? |
A parcel of real property, owned and occupied as a family home. |
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Taxable Value is... |
the assessed value subject to taxaction, after exemptions have been taken into account. |
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Name two criteria for filing a homestead exemption. |
1. Must be head of family
2. Resides on property for a req'd length of time. |
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What is tax district budgeting? |
the taxing body takes their yearly budget, looks at all revenue, and pays for any shortfalls with a floating real estate tax. |
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How is tax rate determined? |
tax requirement / tax base = millage rate.
$500,000 / 15m = .03% |
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a "mill" is equivalent to what in dollars? |
($.001), one thousandth of a dollar.
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30 mills is how much per $100? |
$ 3.00 |
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50 mills is how much per $1,000? |
$ 50.00 |
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Define "special assessment" |
A tax levied against specific properties that will benefit from a public improvement. |
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Gross rent multiplier =
... value / ? |
Monthly rent |
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Gross income multiplier =
... value / ? |
Annual rent |
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Name the 3 types of land use |
1. Private land-use 2. Public land-use 3. Public owned |
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... "limiting restrictions" listed in a covenant are ... |
Things you can never do.
(No fences, no dogs) |
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... "affirmative restrictions" are... |
Things you must abide by.
(Minimum SQ FT, must be brick, set back requirements) |
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The rights to make laws to control local property are called...? |
Enabling Acts |
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Police power is a "control" for land use. Name the 5 areas they are responsible for. |
1. Planning 2. Zoning 3. Construction codes 4. Subdivision Regulations 5. Environment protection law |
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A statement of policies, and a presentation of how it will be implemented is a ...? |
Master Plan |
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The regulation of structures, and uses of property within designated districts or zones is better known as what? |
Zoning |
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This type of zoning controls density and avoids overcrowding. Building height, percentage of open area, etc. |
Bulk zoning |
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This type of zoning requires new buildings to conform to a specific type or architecture. |
Aesthetic zoning |
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This type of zoning encourages the use of zoning as a planning tool for its highest and best use. |
Directive zoning |
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Positioning a structure so that one side rests directly on the lot's boundary line. |
Zero lot line |
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A high density of houses, while maximizing open space is called...? |
Planned Unit Development
(PUD) |
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A park that lies between a subdivision and a commercial development is an example of what? |
A buffer zone |
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Reclassifying a piece of property for a specific purpose (a gas station in a neighborhood), is what kind of zoning? |
Spot, or contract zoning |
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A restaurant near a factory has what kind of permit to be there? |
Conditional use permit |
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A _______ is frequently required to ensure ground water is safe near septic tanks and gas tanks. |
Percolation Test |
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If your neighbor blocks off your light and air with a tall structure, you can attempt to purchase a _______ for rights to light and air. |
Sight easement |
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An owner whose land is subdivided into two parts and offered for disposition as a _____ |
Subdivider |
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One who constructs, and then tries to sell properties for profit is called a ______ |
Developer |
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A legal description identifies a property as _____ and _____, and distinct from all other properties. |
Unique and distinct |
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This system of legal description describes properties divided into lots, which may then be grouped together as blocks. |
Lot and Block |
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The surveyed data of a lot and block system is incorporated into a ________, which must be approved by local authorities before being recorded. |
plat of survey, or subdivision plat map. |
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A property description using the _________ system must start and end at the same point. |
Metes and Bounds |
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D.U.S.T stands for what? |
1. Demand 2. Utility 3. Scarcity 4. Transferability |
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While comparing a subject to a comparable, the appraiser does what to the subject's value? |
Nothing. You only touch the comparable's value. |
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A visible marker, natural or artificial, used to establish lines of boundary in a survey. |
Monument |
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A permanent reference mark affixed to a durable object. |
Benchmark |
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A level surface to which depths are referred, used by surveyors to begin specific measurement of a parcel. |
Datum |
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1 Mile = ______ ft |
5280 |
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1 Square Mile = _______ acres |
640 |
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1 acre = ______ sq. ft. |
43,560 |
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If a 20-year old building was well maintained may have an _____________ of 18 years. |
Effective age |
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A 20 year old building's actual, or chronological age, is __________ |
the actual age of the building, regardless on maintainence. |
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Estimated period where an improved property will yield a return over and above economic rent |
Economic life |
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A way to determine value based on the present value of the rights to future income. This is for income generating properties. |
Income Capitalization Approach |
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The primary survey line running north and south in the rectangular survey system is the |
Principal Meridian |
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__________ run east and west in the rectangular survey system. |
Base lines |
