Chapter 16: Essentials Of New Jersey Real Estate. Key Terms Part 2 Flashcards Preview

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Flashcards in Chapter 16: Essentials Of New Jersey Real Estate. Key Terms Part 2 Deck (11)
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1
Q

Market price

A

What a property actually sells for

2
Q

Market value

A

The price that would be paid by an informed buyer….. The probable price a ready willing and able, informed buyer would pay and a ready willing and able, informed seller would except neither being under any pressure to act - after allowing for a reasonable exposure time on the market.

3
Q

Physical deterioration

A

A loss of value due to wear and tear.

4
Q

Reconciliation

A

The analysis of values received by different appraisal approaches.
The three approaches are: (1)sales comparison approach to value, (2)cost approach to value and (3)income capitalization approach to value.

5
Q

Replacement cost

A

The cost to rebuild using today’s materials and techniques.

6
Q

Sales comparison approach

A

The appraisal technique that analyzes sale prices of comparable properties.

7
Q

Reproduction cost

A

The cost to rebuild exactly, using materials like the original.

8
Q

Situs

A

Loss of value due to wear and tear.

9
Q

Subject property

A

A parcel of real estate being appraised

10
Q

Substitution

A

The principle that no one pays more of the same can be had for less.

11
Q

Value

A

The present worth of future benefits.

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