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24 Cards in this Set
- Front
- Back
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Market Value |
Estimated price one can hope to achieve |
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Market Price |
Actual money paid for a property (selling price) |
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Cost |
Sum of all past expenses that have gone into bringing a property into being |
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Prerequisites to value |
Demand, utility, scarcity, and transferability |
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Principle of Regression |
The most expensive house loses value because of the association with less valuable properties |
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Principal of Progression |
The least expensive property in the neighborhood gains value because of close by properties of greater quality |
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Plottage |
Increase in value via assemblage |
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Letter of opinion |
Informal report that simply states an appraisers opinion of value |
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Short form report |
Used by lenders and government and consist of property and market characteristics as well as appraisers analysis and conclusions |
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Narrative report |
The most comprehensive appraisal report and gives detailed support for the final estimate of value |
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Add to comp sale price |
Comp inferior to subject property |
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Subtract from comp sale price |
Comp better than subject property |
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Reconciliation |
Weighted average of final adjusted comp sales prices |
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Unit in place method |
Used in replacement analysis by estimating cost of each component of the building |
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Quantity survey method |
Most accurate and reliable approach for calculating replacement cost and involves a detailed breakdown of everything that goes into a building |
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Accrued depreciation |
Total lump sum dollar amount a property has depreciated since being built |
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Actual age |
Historical age of the structure |
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Effective age |
How old the property appears to be |
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Total Economic life |
Effective age + remaining economic life |
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% of Depreciation |
Effective age / total economic life |
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Principle of Anticipation |
Core of the income approach to calculating value |
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Principle of substitution |
Core of the cost and sales comparison approach to estimating value |
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Gross rent multiplier |
Best used in residential rental appraisal and uses monthly rent to determine value |
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Gross income multiplier |
Used to determine value of small commercial and residential of 5+ units and uses total annual income to determine value |
