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8 Cards in this Set
- Front
- Back
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Valuation Characteristics |
Demand, Improvements, Scarcity and Location all create value |
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Appraisal |
An opinion of the value of property as of a specific date, supported by objective data |
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3 Valuation Methods |
Sales comparison approach, Cost approach and Income approach |
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Functional Obsolescence |
Means a building is less desirable because of something inherent in the structure itself. * Ex. The outdated style or outdated fixtures |
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External Obsolescence |
Occurs when something outside the control of the property makes it less desirable. * Ex. Changes in land use resulting in air pollution heavier traffic |
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Income Approach |
Appraisal method that estimates the value of real estate by analyzing the revenue or income the property currently generates or could generate. * Most commonly used in commercial real estate |
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Highest and Best Use |
The most profitable, legally permitted, economically feasible, and physically possible use of a property * The most important property specific factor an appraiser considers before determining the value |
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Market Value |
The theoretical price real estate will likely bring in a typical transaction. This is the expected price. *Market price is the actual price |
