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8 Cards in this Set
- Front
- Back
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Competitive market analysis |
A comparison of homes that are similar in location, style, and amenities to the subject property, in order to set a realistic listing price. Similar to the sales comparison approach to value |
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Value in use: |
The value of a property to its owner or to a user. Also, called use value |
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Value in exchange (market value): |
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus |
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Market price: |
The price actually paid for a property |
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Comparable: |
In appraisal, a property that is similar to the subject property and that has recently been sold. The sales prices of comparables provide data for estimating the value of the subject property using the sales comparison approach. Also called a comp or a comparable sale |
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Cash equivalent: |
When a property's financing terms do not affect the market value of the property, the financing is said to be cash equivalent |
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Arm's length transaction: |
A transaction in which there is no pre-existing family or business relationship between the parites |
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Request for reconsideration of value: |
A request to a lender to reconsider the appraised value of the property, when the appraisal comes in lower than expected. The request is supported by data on comparable sales that would support a higher market value for the subject property |
