Flashcards in N9 Appraisal Deck (39)
An estimate of opinion of value.
Four Major Elements of Value:
NOTE: use DUST
The amount a willing buyer will pay and a willing seller will accept.
A transaction in which the parties are dealing from equal bargaining positions.
Arm's Length Transaction
The actual amount of money given in a transaction.
The amount of money required to build a building at current prices.
The principal of _________ states that value is affected by the scarcity of a product and the desire for that product.
Supply & Demand
Highest and Best Use
The use of a property that produces the highest net return.
Land that is not needed to accomplish the highest and best use.
The principal of _________ states that the most a person will pay for a product is set by what it costs to buy a reasonable duplicate.
That value will tend to be more stable in an area where there is a reasonable degree of similarity of property types is a statement of the principal of ___________.
The principle of _______ holds that the presence of lesser properties will adversely affect the value of greater properties.
The principle of ______ holds that the value of a component part is determined by how much that part adds to or detracts from the value of the whole.
The fact that values do not remain constant is a statement of the principle of _______.
The principle of ________ holds that excess profits will breed competitors, which will then reduce profits.
The fact that value is affected by the anticipation of future events is a statement of the principle of ________.
An increase in value for any reason.
Increase in value due to the owner’s efforts.
An increase in value due to no effort by the owner.
Plottage AKA Assemblage.
An increase in value created by joining smaller parcels into one larger parcel.
A decrease in value for any reason.
A loss in value due to physical wear and tear.
A loss in value due to outdated features such as an old bathroom or kitchen.
A loss in value created by technological advances.
A loss in value created by a poor floor plan.
When it is economically feasible to fix a defect.
When it is not economically feasible to fix a defect.
A loss in value that results from conditions outside the property.
Economic Obsolescence AKA External Obsolescence
The three appraisal approaches are:
1. Comparison aka Market Data
2. Cost aka Summation
3. Income aka Capitalization