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