Appraisal - Type of Value Flashcards Preview

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Flashcards in Appraisal - Type of Value Deck (36):
1

investment value

base d on client's criteria and requirements in owning a property

2

Life estate termination

"goes on" interest -> remainderman "goes back or revert" -> revisionary

3

Life estate

freehold estate

4

Corporation own by more than one stock holder

ownership in severalty (one person or entity)

5

Estate from Period to Period (Periodic estate)

month to month

6

Allodial System

complete ownership of real property

7

Easement by necessity

property is landlocked without the easement

8

Easement by express reservation

owner reserved the access for himself

9

Easement by prescription

the use has existed over a period of time, thus implying an easement

10

Easement by implication

implied method through apparent long-standing use

11

Termination of easement

electric power company permanently remove its power lines from a utility easement, but does NOT notify the owner of the property the easement runs across

12

Easement vs. license

Easement - permanent right
License - revocable permission

13

Ground lease (land lease)

the expiration of the lease is usually related to the economic life expectancy of the structure built on it

14

Fee simple estate

an unconditional ownership

15

Annexation

conversion of personal property to real property

16

Value in use

the value of a particular property to a specific user at a specific point in time. Type of value can be used for schools and other properties seldom sold in the open market

17

Market Value

Typical buyer, typical value
The most probable sale price an informed buyer will pay on a given date, with buyer and seller being typically motivated and the property having sufficient market exposure

18

Book value

Financial statement value : Acquisition cost - accumulated depreciation (observing federal tax code)

19

Loan value

used in financing transaction and relies on an LTV for conversion from market value

20

Insurance value

(Replacement)Cost new - land value: insurance value is defined as the cost to replace the structure, not including the land cost

Commonly requested by individual or company who will be issuing an insurance policy

21

Going concern value

An appraiser might need to be competent with more than 1 asset type.

Consider the total asset tangible+ intangible to sell as one unit

22

Salvage value

useful components that could be removed or salvaged before demolition, can offset some cost.

23

Liquidation value

value sought at foreclosure

24

Appraisal Value

opinion (while cost and price are facts)

25

Market Price

amount paid for a particular property

26

Assessed Value

he value placed on property by a taxing authority for purposes of taxation

27

Change

the only constant variable in real estate

28

Prospective analysis

the process of using current data to estimate value into the future

29

Reversionary Value

what property will worth at the end of a lease term

30

Value - Physical Force

size

31

No evident for the research

cannot develop an opinion of market value

32

Determine Assessed Value

First thing to know
MARKET VALUE (not tax rate)

33

Going concern

What the tangible and intangible assets would worth if they are sold as unit - ASSUMING BUSINESS will be WELL in the FUTURE

34

Exposure time
Standard 1-2

When exposure time is a component of the definition for the value opinion being developed, the appraiser must develop an opinion of reasonable exposure time linked to that value opinion.

35

Buyer not acknowledge

Sale price > Market cost and value

36

Value in use

An opinion of market value cannot be developed