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;
10 Cards in this Set
- Front
- Back
|
Define value. |
What property will command in exchange for goods, services or money. |
|
|
Market value is... |
What an able and informed buyer will pay and an able and informed seller will accept if property is offered on the market. |
|
|
Subjective value is... |
A personal view of value by the buyer or seller. |
|
|
Three causes of depreciation |
1. Physical deterioration 2. Functional obsolescence 3. External (economic) obsolescence |
|
|
What are examples of physical deterioration? |
Normal wear and tear Lack of maintenance Dry rot and termites Action of the elements |
|
|
Examples of functional obsolescence |
Poor architectural design Outdated floor plan Insulation Lack of modernization Building deficiency |
|
|
Examples of external obsolescence |
Neighborhood hazard Misplacement of an improvement Change of locational demand Proxmity of nuisances |
|
|
Assessed value is... |
A percentage of value used to calculate ad valorem taxes. |
|
|
Loan value |
A percentage of the sales price or appraised value, whichever is less, that the lender will loan. Also called loan to value ratio. |
|
|
Book value |
The adjusted cost basis from which a capital gain or loss is calculated when the property is sold. On property used in trade or business, it is the cost plus capital improvements less depreciation. For a residence it is the cost plus capital improvements. |
