Chapter 14 Vocab

Question 1

Accrued Depreciation

Answer 1

-Loss in value to a property due to physical, functional, and economic conditions

Question 2

Bell Curve

Answer 2

-Normal frequency curve

Question 3

Comparative Market Analysis

Answer 3

-In depth analysis of a homes worth done by an agent to determine listing or offer price

Question 4

Market Approach

Answer 4

-Compares properties that have recently been sold in the same area as the one being appraised

Question 5

Certified Appraiser

Answer 5

• holds a license at the state level.

- Appraise properties with no limitations

Question 6

Cost Approach

Answer 6

finds value by finding the cost to build a new residence subtracting the accrued depreciation and adding results to land

Question 7

Economic Obsolescence

Answer 7

-Factors outside the property itself such as a deteriorating neighborhood

Question 8

Functional Obsolescence

Answer 8

-Inadequacies cause by poor design

Question 9

Histogram

Answer 9

-the curve in the bar graph

Question 10

Income Approach

Answer 10

• Converts income into value

- CAP Rate

Question 11

Physical Depreciation

Answer 11

describes the ordinary aging process of a building