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33 Cards in this Set

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  • Back
Assessed value
value on the tax roles
Cash equivalent price
a price adjusted for financing. Focus on cash to seller, although it may be buyer as well as seller affected
Construction costs
contractor bid, including direct cost plus contractor indirect cost
Cost
the amount of money for production, as opposed to price or value
Demand
created by its utility, and affected its scarcity; desire & ability to purchase goods/services
Desire
the want of a good or service, regardless of ability to purchase
Development costs
cost of improvements plus land, plus money to bring to an operating state
Direct, or hard costs
hard cost, for labor and materials
Effective purchasing power
the ability to pay for what is desired
Going-concern value
the value of a proven property operation
Indirect, or soft costs
soft cost, for other than labor and materials
Insurable value
value for insurance purpose, typically replacement cost
Investment value
value to a particular investor
Limited-market properties
one with relatively few potential buyers
Market
arrangements where buyers and seller are brought together through price mechanisim
Market value
an objective value; a value that meets the definitional requirmements of a market value definition
Price
actual money paid
Public interest value
value for a public use
Real estate market
market for real property assets, for real property rigths for other assets, such as money
Scarcity
relative lack or abundance of a good or service, compared to demand
Special-purpose property
unique, limited-market properties
Supply
influenced by its utility, and limited by its scarcity
Use value
the value of a property given a specific use
Utility
the ability of a good or service to meet a need, regardless of scarcity/abundance
Value
worth of a property
Differences in "market value"
1. Cash verses non-cash equivalent financing terms
2. Specified property rights verses real estate
3. Price verses highest price
4. Most probable price verses highest price
5. Equilibrium value verses market value
USPAP requirements related to "market value" in a report
1. Identification of specific property rights
2. Statement of the effective date of the value
3. Specified as to whether cash or other terms
4. If other financing terms, specification of the terms and affect on value
Factors of value
1. Utility
2. Scarcity
3. Desire
4. Effective purchasing power
Utility
ability to satisfy a human want, need, or desire
Scarcity
present/ and anticipated supply relative to demand
Desire
purchaser wish to satisfy a human need
Effective purchasing power
ability to participate in a market
History of value
1. Classical school
2. Challenges to Classical school
3. Neoclassical school