Module 8 Flashcards
_______ costs are largely comprised of labor and materials, but other costs such as equipment, site security, and fencing are included.
Direct (hard) cost
_____ Costs are expenses such as the professional services of architects and surveyors, costs for building permits, and costs for insurance.
Soft
_______ is a market-derived figure that represents the amount an entrepreneur expects to receive as his or her contribution.
Entrepreneurial Inventive
______ is identified with the overall project and includes the construction costs, plus acquisition costs and all the other expenditures required to bring a property into an operating state.
Development cost
Cost and price are facts. _________ is not.
Value
It is an opinion of the present worth of the future benefits that accrue to real property ownership.
What are the 4 independent factors that create value?
1. Utility (ability to satisfy a human want, need, desire) 2. Scarcity 3. Desire 4. Effective Purchasing Power
The value a specific property has for a specific use.
Use Value
Use Value is often divided into what two categories of property types?
Limited-market properties
Special-use properties
Limited-market property examples include:
Large manufacturing plant
Research and development property
Special-use property examples include:
Religious Facility
Museum, library, school
Hospital, post office
Investment value is NOT market value for an investment property. Instead, it is
the value of an investment property to a particular investor based on their investment requirements.
The market value of all the tangible and intangible assets of an established and operating business with an indefinite life.
Going Concern
“market value of Going Concern”
A type of value for insurance purposes____-
Insured Value
Appraisers that perform assignments for insurable value are typically analyzing the depreciated cost of the improvements for insurance purposes.
The value of a property according to the tax rolls in ad valorem taxation.
Assessed Value
