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24 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Appraisal |
Process of estimating value. |
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Appraiser |
An independent person trained to provide an unbiased estimate of value. |
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Capitalization Rate |
Rate of return demanded by investors in a particular area. |
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Amenity |
Extra that contributes to owner satisfaction: clean air, view, and so on. |
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Comparables |
Similar nearby property recently sold. |
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Cost Approach |
Appraisal technique that analyzes the cost to build. |
Cost to build |
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Depreciation |
Loss of value due to any cause. |
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External Obsolescence |
Loss of value due to factors beyond the property boundaries. |
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Functional Obsolescence |
Loss of value due to work or outmoded features. |
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Gross Income Multiplier |
Analysis of income including rental and other factors. |
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Gross Rent Multiplier |
Analysis of rental income, used roughly in sales comparison approach. |
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Highest and Best Use |
Use of land that yields the most money. |
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Income Approach |
Analysis of value of property using return on investment. |
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Market Price |
What a property actually sales for. |
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Market Value |
Price that would be paid by an informed buyer. |
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Physical Deterioration |
Loss of value due to wear and tear. |
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Reconciliation |
Analysis of values recieved by different appraisal approaches. |
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Replacement Cost |
Cost to rebuild using today's materials and techniques. |
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Reproduction Cost |
Cost to rebuild exactly, using materials like the original. |
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Sales Comparison Approach |
Appraisal technique that analyzes sale price of comparable properties. |
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Situs |
Location; buyers willingness to pay for more for certain locations. |
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Subject Property |
Parcel of real estate being appraised |
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Substitution |
Principle that no one pays more if the same can be had for less. |
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Value |
Present worth of future benefits. |
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