Flashcards in Chapter 16: Essentials Of New Jersey Real Estate. Key Terms Part 2 Deck (11)
What a property actually sells for
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.
A loss of value due to wear and tear.
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.
The cost to rebuild using today's materials and techniques.
Sales comparison approach
The appraisal technique that analyzes sale prices of comparable properties.
The cost to rebuild exactly, using materials like the original.
Loss of value due to wear and tear.
A parcel of real estate being appraised
The principle that no one pays more of the same can be had for less.