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Flashcards in Appraisal Process Deck (16)
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1

The Valuation Process

1. Identification of the problem
2. Scope of work determination
3. data collection and property description
4. Data Analysis
5. Land Value opinion
6. Application of the approaches to value
7. Reconciliation of value indicators
8. Report of defined value

2

Market Analysis

the study of the supply and demand in a specific area for a specific type of property

3

Highest and Best Use

the reasonably probable use of property that results in the highest value

4

HABU 4 Tests

1.legally permissible
2.Physically Possible
3. financially feasible
4.maximally productive

5

HABU analysis 3 step process

1. determine HABU as vacant
2. Determine HABU as improved
3. Determine as either.

6

Questions we must always ask for HABU

1. Leave as is?
2. Modify?
3. Demo?

7

Consistent use

the concept that land cannot be valued on the basis of one use while the improvements are valued on the basis of another use

8

Sales Comparison Approach

sales of similar properties are compared to the subject to arrive at an indication of value

9

Comparable Data

Near in time, located near property, and alike

10

Arms length transaction

transaction between unrelated parties who are each acting in his or her own best interest

11

Primary Data

Information confirmed directly with someone directly involved in the transaction

12

Secondary Data

MLS, brokers..

13

Gross Rent Multiplier

The relationship or ratio between the sale price or value of a property and its periodic gross rental income.

14

Monthly GRM

Sales price / Monthly Rent

15

Quantitative

quantified; numbers

16

Qualitative

narrative