Chapter 16: Essentials Of New Jersey Real Estate. Key Terms Part 1 Flashcards Preview

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Flashcards in Chapter 16: Essentials Of New Jersey Real Estate. Key Terms Part 1 Deck (13)
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1
Q

Amenity

A

The extra that contributes to an owner satisfaction: clean air, view and so on…

2
Q

Appraisal

A

The process of estimating a value.

3
Q

Appraiser

A

An independent person trained and licensed to estimate value.

4
Q

Capitalization rate

A

A rate of return a property produces on the owners investment.

5
Q

Comparables

A

The similar nearby properties that have recently sold.

6
Q

Cost approach

A

The analysis of rental income, used roughly in sales comparison approach.

7
Q

Depreciation

A

The loss of value due to any cause.

8
Q

External obsolescence

A

A loss of value due to factors be on the property boundaries. Such as social or environmental forces or objectionable neighboring property. Also called locational obsolescence or economic obsolescence.

9
Q

Functional obsolescence

A

A loss of value due to worn or outmoded features. A loss of value to an improvement to real estate due to becoming outdated, often caused by age or poor design.

10
Q

Gross income multiplier

A

The analysis of income including rental and other factors.

11
Q

Gross Rent Multiplier (GRM)

A

The analysis of rental income, used roughly in sales comparison approach. It is the Sales Price divided by the Rental Income known as the Gross Rental Multiplier. SP\RI=GRM

12
Q

Highest and best use

A

The use of land that you’re the most money.

13
Q

Income approach

A

The analysis of value of property using the (ROI) return on investment.

Decks in Real estate license study Class (32):