Part 13 -18 Focus Flashcards
(13 cards)
Elements of comparison
1 - real property rights conveyed 2 - financing terms 3 - conditions of sale 4 - expenditures made immediately after purchase 5 - market conditions
*** transaction adjustments
Plottage (assemblage)
the increment of value that often occurs when 2 or more sites are combined to produce greater utility. The process that creates plottage is assemblage.
Extraction
method of estimating land value in which the depreciated cost of the improvements on an improved property is calculated and deducted from the total sale price to arrive at an estimated price for land.
Extraction (Formula)
Sales price MINUS contributory value of the improvements = extracted value. Of land
Allocation
a method of estimating land value in which sales of improved properties are analyzed to establish a typical ratio of land value to total property value and this ratio is applied to the property being appraised or the comparable sale being analyzed
Allocation (Formula)(ratio)
Land value / Sales price
nonconforming
is the current use complying with the zoning for the site?
Grandfathered use
nonconforming to current zoning, but it is permitted and this it is a legal use
Manufactured home
the housing must be legally classified as real estate (not personal property).
Quantitative adjustments
expressed in numerical amounts, such as dollars and percentages.
Paired data analysis
This technique is based on the premise that when 2 properties are equivalent in all aspects but one, the value of a single difference can be measured to indicate the difference in price between 2 properties.
Qualitative analysis
Examination of non-measurable data such as a firm’s reputation
Ranking analysis
relative comparison. Sales are ranked, ascending or descending, terms of desirability. Visualize patterns.
