Flashcards in Module 6 Appraisal Deck (9)
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1
Q
Define: Condemnation
A
A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner. 60
2
Q
Define: Assessed value
A
The value set on property for taxation purposes. 225
3
Q
Elements of Value (DUST)
A
D= Demand U= Utility S= Scarcity T= Transferability
4
Q
Economic principles
A
- Supply and Demand
- Change
- Substitution
- Highest and best use
- Conformity / Regression
- Contribution Over improvement
5
Q
3 Basic valuation Techniques
A
- Comparable sale report - Market data report
- Income Approach
- Revenue, Expense and net
- Capitalization technique
- Cost approach
- Deprecation
6
Q
Steps in the appraisal process
A
- State the purpose
- List type of data you need and the sources
- Gather, record, and verify the general date
- Analize and interpret the data
- Prepare the appraisal report.
7
Q
How many years does an appraisal have to keep that record for?
A
5 Years
8
Q
Define: Market Value
A
The most probable price that a property would bring in an arm’s-length transaction under normal conditions on the open market. 300
9
Q
Market Price:
A
Amount of money a buyer is willing to pay in an open and competitive market.