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Real Estate > Appraisal and Land Use > Flashcards

Appraisal and Land Use Flashcards

(62 cards)

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1
Q

Environmental Impact Report

A

A study of how a development will affect the ecology of its surroundings

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2
Q

Cost Approach

A

Appraisal Method - estimates replacement cost of the improvements, deducts estimated accrued depreciation and then adds market value of the land

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3
Q

Front Footage

A

Width of a property along the street

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4
Q

Net Income

A

NOI - remaining income after operating expensed have been subtracted from the gross income of a property

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5
Q

Ad Valorem

A

Latin for according to value - Local governments levy real property tax based on the assessed value.

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6
Q

Property taxes are known as what type of tax?

A

Ad valorem taxes

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7
Q

Cost

A

Expenses in money, labor, material or sacrifices in acquiring or producing something

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8
Q

Appreciation

A

Increase in value

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9
Q

Demand

A

the desire to buy or obtain a commodity

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10
Q

Reproduction Cost

A

Current cost of building a replica of the subject structure using similar quality materials - exact duplication of the buildings

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11
Q

Which costs more - reproduction or replacement costs?

A

Reproduction

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12
Q

Contract Rent

A

Amount of rental income due from the tenant as agreed in the lease agreement

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13
Q

Calendar Year

A

Jan 1 - Dec 31

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14
Q

Assessed Value

A

Value placed on property by a public tax assessor as a basis for taxation

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15
Q

Deferred Maintenance

A

Negligent care of a building

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16
Q

Corner Lot

A

Lot found at the intersection of 2 streets

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17
Q

Cap Rate

A

Capitalization Rate

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18
Q

Appraisal Report

A

Written report setting forth an appraiser’s estimates of value of a subject property

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19
Q

Transferability

A

Ability to transfer ownership of an item from one person or entity to another

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20
Q

Fiscal Year

A

a year as reckoned for taxing or accounting purposes

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21
Q

Vacancy Factor

A

Lost income because of a vacant unit

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22
Q

“DUST”

A

4 elements that create value - Demand, Utility, Scarcity and Transferability

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23
Q

Assemblage

A

Putting several smaller, less valuable parcels together under 1 ownership to increase value of total property

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24
Q

Economic Age

A

Age of a building determined by its condition and usefulness

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25
Supply
Total amount of an item that is for sale or lease, at various prices, at any given point in time
26
Capital Improvements
Any permanent improvement made to real estate for the purpose of increasing the useful life of the property or increasing the property's value
27
Effective Demand
Desire coupled with purchasing power
28
Value
Power of goods or services to command other goods in exchange for the present worth of future benefits arising from ownership
29
Sales Comparison Approach
Appraisal Method - using the principles of substitution to compare similar properties
30
Accrued
Accumulated over a period of time
31
Reconciliation
AKA correlation - adjustment process of weighing the results of all 3 appraisal methods to arrive at a final estimate of market value for the subject property
32
Appraisal
Act or process of developing an opinion of value
33
Income Approach
Appraisal Method - based on the property's anticipated future income
34
Gross Rent
Income (figured annually) received from rental units before any expenses are deducted
35
Capitalization
Process of calculating the present worth of a property on the basis of its capacity to continue to product an income stream
36
Price
What is paid for something
37
Scarcity
Less availability of a commodity in the marketplace resulting in increased value when demand exceeds supply
38
Eminent Domain
Right of the government to take private property from the owner, for public use, and paying for the fair market value
39
Economic Life
Estimated period over which an improved property may be profitably used to yield a return
40
Comp
comparable properties
41
Market Value
Price the property would bring if freely offered on the open market with both a willing buyer and willing seller
42
Depreciation
Loss in value from any cause
43
Variance
Exception granted to existing zoning regulations for special reasons
44
Principal of Anticipation
Market anticipates the future benefits that are to be derived from the property
45
Cul-de-sac Lot
Lot on a dead end street
46
Utility Value
Usefulness of the property
47
Functional Utility
Combined factors of usefulness with desirability
48
Improvements
Any buildings or structures on a lot
49
Effective Gross Income
Anticipated income resulting from estimated potential gross income from a rental property less an allowance for vacancy and bad debts
50
Operating Expenses
Expenditures necessary to the operation of an income-producing building
51
Effective Age
Years or age shown by the condition and utility of a structure, rather than its actual or chronological age
52
Book Value
Initial cost of the property plus capital improvements and minus the total accrued depreciation
53
Actual age
Real age of a building
54
Condemnation is a common name for what?
Eminent Domain
55
Replacement Cost
Cost of replacing improvements with modern materials and techniques
56
Actual Depreciation
Depreciation occurring as a result of physical, functional, or economic forces that cause loss in value to a building
57
Subdivision
Plot of land divided into smaller portions for the purpose of building
58
Gross Rent Multiplier (GRM)
Figure which, when multiplied by the monthly rental income, equals the property's market value
59
Accrued Depreciation
Difference between the cost to replace the property and the property's current appraised value
60
Gross Income Multiplier (GIM)
Figure which, when multiplied by the annual gross income from all sources not just annual rent, equals the property's market value
61
Principle of Substitution
Market value of a property is affected by the cost of obtaining an equally desirable and valuable property as a substitute
62
Market Rent
Rent a property should bring in the open market

Real Estate (19 decks)

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