Chapter 13 Flashcards
The monetary relationship between properties and those who buy, sell, or use those properties.
Value
what a property is worth
Value
The amount asked, offered, or paid for a property.
Price
The total dollar expenditure to develop an improvement (structure); applies to either reproduction of an identical improvement or replacement with a functional equivalent, not exchange (price).
Cost
The most common type of value sought by real property appraisers is
Market Value
the major focus of most real property appraisal assignments.
Market value
A transaction between unrelated parties under no duress
Arms-length transaction
a retrospective opinion developed by the appraiser based on an analysis of past events assuming a competitive and open market
Exposure Time
The time a property remains on the market.
Exposure Time
Attribution of value to goods or services based on what can be obtained for them in exchange for other goods and services.
Value in exchange
Market value is an example of :
Value in exchange
The value of a property assuming a specific use, which may or may not be the property’s highest and best use on the effective date of the appraisal.
Value in use
Value in use may come into play when appraising
commercial or industrial properties
The value of a property interest to a particular investor or class of investors based on the investor’s specific requirements.
Investment Value
“A type of value for insurance purposes.”
Insurable value
A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable to a favorable lease or mortgage, the value attributable to goodwill.
Intangible value
The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern.
Going concern value
Monetary worth attributed to features that have no measurable worth in the market but may benefit the public or a specific segment of the public.
Public Interest Value
The capital amount at which property is shown on the account books of a corporation or individual.
Book Value
The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere
Salvage Value
A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer’s mortgage company appraises the home at $525,000. The sales contract for $560,000 represents the __________ of the property.
Price
Once stated, price is ________.
fact
The monetary relationship between properties and those who buy, sell, or use those properties” is the definition of
Value
A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer’s mortgage company appraises the home at $525,000. The appraiser’s opinion of $525,000 represents the _________ of the property.
Value
