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30 Cards in this Set
- Front
- Back
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WHAT IS MARKET VALUE ? |
EXPECTED PRICE IN AN ARM'S LENGTH TRANSACTION. |
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What is called a trx considered if us not an ARM'S LENGTH |
DISTORTED |
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WHAT IS INVESTMENT VALUE ? |
A SPECIFIC VALUE OF AN INVESTMENT That an INVESTOR expect |
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WHAT IS USE VALUE ?
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OWNER-USER BASED VALUE OF A SPECIAL PURPOSE PROPERTY SUCH AS A HOSPITAL |
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WHAT IS ASSESSED VALUE ?
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THE VALUE ESTABLISHED FOR AD VALOREM TAX PURPOSES.
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WHAT IS INSURABLE VALUE ?
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THE PORTION OF ASSET VALUE UNDER THE PROVISIONS OF A LOSS INSURANCE POLICY.
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WHAT IS GOING CONCERN VALUE ?
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VALUE OF A BUSINESS, SEPERATE FROM THE REAL ESTATE.
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WHAT IS LIQUIDATION VALUE ?
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THE VALUE BASED ON A QUICK SALE OR LESS THAN ADEQUATE EXPOSURE ON THE OPEN MARKET.
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WHAT ARE THE 12 ECONOMIC PRINCIPLES ?
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ANTICIPATION, BALANCE, CHANGE, CONFORMITY, COMPETITION, CONSISTENT USE, CONTRIBUTION, OPPORTUNITY COST, SUPPY AND DEMAND, SUBSTITION, SURPLUS PRODUCTIVITY, AND UTILITY. |
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WHAT IS ABSORPTION ?
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RATE AT WHICH A PROPERTY WILL BE SOLD OR LEASED EACH YEAR.
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WHAT IS ANTICIPATION ?
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ANTICIPATION OF BENEFITS IN THE FUTURE.
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WHAT IS BALANCE ?
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Maximum value is maintained through balance.Value is created and maintained when there is equilibrium in the amount and location of essential types of real estate. |
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WHAT IS CONFORMITY ?
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NEITHER OVER-IMPROVED NOR UNDER-IMPROVED PROPERTY COMPARED TO ITS SURROUNDING.
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WHAT IS PRINCIPLE OF REGRESSION?
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OVER-IMPROVED PROPERTY VALUE DECLINES COMPARED TO ITS SURROUNDINGS.
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WHAT IS THE PRINCIPLE OF PROGRESSION ?
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THE VALUE OF AN UNDER-IMPROVED PROPERTY INCREASES TOWARDS ITS SURROUNDINGS.
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WHAT IS COMPETITION ?
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DEMAND BY TWO OR MORE PARTICIPANTS FOR AN ITEM IN SHORT SUPPLY. |
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WHAT IS CONSISTENT USE ?
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IMPROVED LAND MUST BE VALUED FOR THE SAME USE AS ITS EXISTING IMPROVEMENTS.
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WHAT IS CONTRIBUTION ?
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THE VALUE OF A FEATURE (COMPONENT) MEASURED IN TERMS OF ITS VALUE OF THE WHOLE PROPERTY. |
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WHAT IS OPPURTUNITY COST ?
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THE COST OF PASSING UP AN OPPORTUNITY OR OPTIONS FORGONE. |
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WHAT IS SUBSTITUTION ?
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IF SIMILAR PROPERTIES AVAILABLE, THE LOWEST PRICED WILL ATTRACT THE GREATEST DEMAND.
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WHAT IS AFFECT ON PRICE RELATED TO SUPPLY AND DEMAND ?
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PRICES VARY DIRECTLY WITH DEMAND AND INVERSLY WITH SUPPLY. |
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WHAT IS SURPLUS PRODUCTIVITY ?
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NET INCOME AFTER THE COST OF LABOR, CAPITAL, AND COORDINATION PAID. |
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WHAT IS UTILITY ?
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A MEASURE OF USEFULNESS OF A PROPERTY.
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WHAT ARE THE 4 MAJOR FACTORS THAT INFLUENCE VALUE ?
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SOCIAL, ECONOMIC AND GOVERNMENT FORCES, ENVIROMENTAL/GEOGRAPHIC CONDITIONS. |
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WHAT ARE SOCIAL FORCES ?
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DEMOGRAPHICS. POPULATION, RATE OF FAMILY FORMATIONS/DISSOLUTIONS. |
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WHAT ARE ECONOMIC FORCES ?
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FACTORS THAT AFFECT PURCHASING POWER. WAGE, ECONOMIC BASE, AVAILABILITY OF CREDIT. |
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WHAT ARE GOVERNMENT FORCES ?
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POLITICAL INFLUENCE. TAXES, PUBLIC SERVICES, LAWS. |
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WHAT ARE ENVIROMENTAL CONDITIONS ?
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GEOGRAPHIC OF PHYSICAL FACTORS THAT AFFECT THE DESIRABILITY OF A PROPERTY OR COMMUNITY. WEATHER, VIEW, LOCATION, TOPOGRAPHY. |
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WHAT IS MONEY MARKET ?
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INVESTMENTS IN SHORT-TERM FINIANCIAL INSTRUMENTS. TREASURY BILLS, CERTICATES OF DEPOSITS GOVERNMENT SECURITIES. |
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WHAT IS CAPITAL MARKET ?
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INVESTMENTS IN SHORT-TERM FINANCIAL INSTRUMENTS. LAND CONTRACTS, STOCKS AND BONDS, MORTGAGES.
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