Chapter 16: Essentials Of New Jersey Real Estate. Key Terms Part 1 Flashcards
The extra that contributes to an owner satisfaction: clean air, view and so on…
The process of estimating a value.
An independent person trained and licensed to estimate value.
A rate of return a property produces on the owners investment.
The similar nearby properties that have recently sold.
The analysis of rental income, used roughly in sales comparison approach.
The loss of value due to any cause.
A loss of value due to factors be on the property boundaries. Such as social or environmental forces or objectionable neighboring property. Also called locational obsolescence or economic obsolescence.
A loss of value due to worn or outmoded features. A loss of value to an improvement to real estate due to becoming outdated, often caused by age or poor design.
Gross income multiplier
The analysis of income including rental and other factors.
Gross Rent Multiplier (GRM)
The analysis of rental income, used roughly in sales comparison approach. It is the Sales Price divided by the Rental Income known as the Gross Rental Multiplier. SP\RI=GRM
Highest and best use
The use of land that you’re the most money.
The analysis of value of property using the (ROI) return on investment.