Appraisal Approaches and Principles of Approaches 9 Flashcards Preview

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Flashcards in Appraisal Approaches and Principles of Approaches 9 Deck (75)
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1

Estimate or Opinion of Value and Supported by an Analysis of Facts.

Appraisal -

Estimate or Opinion of Value and Supported by an Analysis of Facts

Chap 9

2

(AVM) Aut_______ Val______ Mod____

Appraisal made by Placing Data into an Algorithm

(AVM) Automated Valuation Model -

Appraisal made by Placing Data into an Algorithm

Chap 9

3

Or_______

Way Building is "Situated on Lot"

Orientation -

Way Building is "Situated on Lot."

Chap 9

4

Dir_______nal G______

Way Community is Developing

Directional Growth -

Way Community is Developing

Chap 9

5

Greater Properties "Positively Effect Value" of Lesser Properties

Principle of Progression -

Greater Properties "Positively Effect Value" of Lesser Properties

Chap 9

6

F___ C___ V____  aka  Ass_____ Val____

Value for Tax Purpose

Full Cash Value; Assessed Value -

Value for Tax Purpose

 

Limited Prop Value x Assessed Value Ratio = Assessed Value

Chap 9

7

Ins____ V____

Value when Building Destroyed

Insurance Value -

Value when Building Destroyed

Chap 9

8

U_____

Capacity of Product to "Satisfy Human Need"

Utility -

Capacity of Product to "Satisfy Human Need"

Chap 9

9

T_________

Relative Ease of Transferring Ownership

Transferability -

Relative Ease of Transferring Ownership

Chap 9

10

Principal of R________

Presence of Lesser Properties "Adversely Affect Value" of Greater Properties

Principal of Regression -

Presence of Lesser Properties "Adversely Affect Value" of Greater Properties

Chap 9

11

Major Elements of Value - DUST:

  1. Dem___
  2. U____,
  3. Sc____
  4. T__________

Major Elements of Value -

DUST:

  1. Demand,
  2. Utility,
  3. Scarcity
  4. Tranferability

Chap 9

12

Mar___ V____ -

Amount Willing Buyer Will Pay and Seller Will Accept

Note: Market Value - Amount Given and Taken for a Property

Market Value -

Amount Willing Buyer Will Pay and Seller Will Accept

Note: Market Value - Amount Given and Taken for a Property

Chap 9

13

M____ P______

Amount Given and Taken for a Property

Note: Market Value - What Willing Seller/Buyer Will Pay

Market Price -

Amount Given and Taken for a Property

Arms Length Transaction - One in Which Parties Have Equal Bargaining Positions.

Note: Market Value - What Willing Seller/Buyer Will Pay

Chap 9

14

Amount of Money to Build Brand New?

Cost -

Amount of Money to Build Brand New

Chap 9

15

Principle of H_____ and B___ Use -   Use of Property that Brings Greatest Net Return

  1. Only One - Highest Best Use: at Any One Time
  2. Based On Net Income: Takes Z____, Building Codes and Surrounding Market Into Account.
  3. Excess Land: Does Not Support Highest and Best Use

Principle of Highest and Best Use - Use of Property that Brings Greatest Net Return

  1. Only One - Highest and Best: Use at Any One Time
  2. Based On Net Income: Takes Zoning, Building Codes and Surrounding Market into Account.
  3. Excess Land: Does Not Support Highest and Best Use

Chap 9

16

Principle of Sub_________

No Reasonable Person Will Pay More for a Property Than Would Pay For a Duplicate

Will Not Pay More for Duplicate!

Principle of Substitution -

No Reasonable Person Will Pay More for a Property Than Would Pay For a Duplicate

Will Not Pay More for Duplicate!

Chap 9

17

Principle of Su___ and De____

The Idea that Value is Affected by the Scarcity and Desire.

Principle of Supply and Demand -

The Idea that Value is Affected by the Scarcity and Desire.

Chap 9

18

Principle of C________

Value will Remain Stable in area with Reasonable Conformity.

Principle of Conformity -

Value will Remain Stable in area with Reasonable Conformity.

Chap 9

19

D_____

Amount of "Desire" to Buy a Product

Demand -

Amount of "Desire" to Buy a Product

Chap 9

20

Principle of C________-

Idea that Excess Profits can Increase Competition which Destroys Profits

Principle of Competition -

Idea that Excess Profits can Increase Competition which Destroys Profits

Chap 9

21

Principle of Ch____ -

Appraisal Principle "Values Do Not Remain the Same." Appraisers Must Consider how Changing Economic and Social Conditions Affect Value

Principle of Change -

Appraisal Principle "Values Do Not Remain the Same." Appraisers Must Consider how Changing Economic and Social Conditions Affect Value

Chap 9

22

Principle of Dev______, Equi_____, Disin_______ -

Idea that Property Goes Through Phases of Growth, Stability, and Decline.

Principle of Development, Equilibrium, Disintegration -

Idea that Property Goes Through Phases of Growth (Development), Stability (Equilibrium), and Decline (Disintegration)

Chap 9

23

Com_______ Approach (Ma____ Da__/ Dir___ Sa____ Approach) -

Appraisals that Uses Similar Comparable and Recent Sales

Comparison Approach (Market Data/ Direct Sales Approach) -

Appraisals that Uses Similar Comparable and Recent Sales

Chap 9

24

Sq____ F_____ of Liv____ Area -

Measuring "Exterior Dimensions" of Exterior Walls

Note: Not Garage or Patio

Square Footage of Living Area -

Measuring "Exterior Dimensions" of Exterior Walls

Note: Not Garage or Patio

Chap 9

25

Det________ -

Loss of Value by "Wear and Tear."

Deterioration -

Loss of Value by "Wear and Tear."

Chap 9

26

Principle of An_________ -

Value affected by "Future Events"

Principle of Anticipation -

Value affected by "Future Events"

Chap 9

27

E_____ In______ -

Appreciation by Owners Efforts

Earned Increments -

Appreciation by Owners Efforts

Chap 9

28

U________ Increments -

Appreciation by Other Factors, Out of Owners Control

Unearned Increments -

Appreciation by Other Factors, Out of Owners Control

Chap 9

29

Plot_____ (Assem_______) -

Joining "Smaller Parcels" into one Larger One.

Plottage (Assemblage) -

Joining "Smaller Parcels" into one Larger One.

Chap 9

30

Principle of Contr_______ -

Value of Component that Adds To or Detracts from Value of Whole.

Principle of Contribution -

Value of Component that Adds To or Detracts from Value of Whole

Chap 9