Chapter 16: Essentials Of New Jersey Real Estate. Key Terms Part 2 Flashcards Preview

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Flashcards in Chapter 16: Essentials Of New Jersey Real Estate. Key Terms Part 2 Deck (11):
1

Market price

What a property actually sells for

2

Market value

The price that would be paid by an informed buyer..... The probable price a ready willing and able, informed buyer would pay and a ready willing and able, informed seller would except neither being under any pressure to act - after allowing for a reasonable exposure time on the market.

3

Physical deterioration

A loss of value due to wear and tear.

4

Reconciliation

The analysis of values received by different appraisal approaches.
The three approaches are: (1)sales comparison approach to value, (2)cost approach to value and (3)income capitalization approach to value.

5

Replacement cost

The cost to rebuild using today's materials and techniques.

6

Sales comparison approach

The appraisal technique that analyzes sale prices of comparable properties.

7

Reproduction cost

The cost to rebuild exactly, using materials like the original.

8

Situs

Loss of value due to wear and tear.

9

Subject property

A parcel of real estate being appraised

10

Substitution

The principle that no one pays more of the same can be had for less.

11

Value

The present worth of future benefits.