Reading...
Play button
Play button
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;
38 Cards in this Set
- Front
- Back
|
Appraisal
|
An appraisal is an estimate or opinion of value for a specific time. Cost does not equal vaule.
|
|
|
Market Value
|
The value of the property when you have a ready, willing, and able buyer and seller under no pressure.
|
|
|
Subjective Value
|
The value that a property is worth to a buyer it's personal use value.
|
|
|
Assessed value
|
For property tax purposes. The assessed value is a percentage of the market value. In Arizona percentage for residential is 10%, raw land is 16% and commercial properties 24%.
|
|
|
Book Value
|
Costs basis.
|
|
|
Loan Value
|
what a mortgage company will loan on a home.
|
|
|
Insurance value
|
replacement value.
|
|
|
Plottage Value
|
Putting two parcel together. Assemblage.
|
|
|
Elements of Value
|
Demand, Utility, Scarcity, and Transferability.
|
|
|
Demand
|
Must be accompany by buying power.
|
|
|
Utility
|
Useful purpose.
|
|
|
Scarcity
|
Not a lot like it.
|
|
|
Transferability
|
Legal title.
|
|
|
Special forces influence value
|
Physical characteristics, social standards, economic trends, and Political or government.
|
|
|
Physical Characteristics
|
Personal preference.
|
|
|
Social Standards
|
What is the area like and location.
|
|
|
Economic Trends
|
Employment
|
|
|
Political or Government
|
Regulations and zoning.
|
|
|
Principles of value
|
highest and best use, substitution,change,intergration, equilibrium,disintegration, regression, progrrssion,conformity, anticipation, competition, contribution, supply and demand, and balance.
|
|
|
Substitution
|
Not paying more compare to another.
|
|
|
Change
|
Consistency
|
|
|
Integration
|
Goes up
|
|
|
Equilibrium
|
Even out
|
|
|
Disintegration
|
Down turn
|
|
|
Regression
|
Purchase a home in nice neighborhood.
|
|
|
Progrrssion
|
Worst in neighborhood
|
|
|
Conformity
|
Conforms to the area.
|
|
|
Anticipation
|
Expect to go up in value.
|
|
|
Methods of Appraisals
|
Market data approach, Costs Approach, Income Approach.
|
|
|
Types of Depreciation
|
Physical, functional obsolescence, and economic obsolescence.
|
|
|
Physical Depreciation
|
Wear and tear.
|
|
|
Functional Obsolescence
|
A loss of value because an improvement is either outdated or inadequate. This can be curable or incurable.
|
|
|
Economic (social) obsolescence
|
A cause of depreciation from outside events or factors that cannot be cured by the property owner.
|
|
|
Market Data Approach (Sale Comparison Analysis)
|
This is used in resale home and land. Also on new construction. Method used to get comparable sales in the area in adjustment.
|
|
|
Cost Approach (Summation)
|
Vaule of the improvements minus depreciation plus the value of the land.This method would be used it's comparable properties cannot be found such as school, post office, or church.
|
|
|
Income Approach
|
An appraisal method is if the property produces an income such as offices and shopping centers. Also called capitalization.
|
|
|
Incurable
|
Depreciation that is not fixable or curable by the property owner, such as economic obsolescence.
|
|
|
Curable
|
Depreciation that can be fixed or cured by the property owner.
|
