Part 13 -18 Focus Flashcards Preview

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Flashcards in Part 13 -18 Focus Deck (13)
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1
Q

Elements of comparison

A
1 - real property rights conveyed
2 - financing terms 
3 - conditions of sale
4 - expenditures made immediately after purchase
5 - market conditions

*** transaction adjustments

2
Q

Plottage (assemblage)

A

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.

3
Q

Extraction

A

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.

4
Q

Extraction (Formula)

A

Sales price MINUS contributory value of the improvements = extracted value. Of land

5
Q

Allocation

A

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

6
Q

Allocation (Formula)(ratio)

A

Land value / Sales price

7
Q

nonconforming

A

is the current use complying with the zoning for the site?

8
Q

Grandfathered use

A

nonconforming to current zoning, but it is permitted and this it is a legal use

9
Q

Manufactured home

A

the housing must be legally classified as real estate (not personal property).

10
Q

Quantitative adjustments

A

expressed in numerical amounts, such as dollars and percentages.

11
Q

Paired data analysis

A

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.

12
Q

Qualitative analysis

A

Examination of non-measurable data such as a firm’s reputation

13
Q

Ranking analysis

A

relative comparison. Sales are ranked, ascending or descending, terms of desirability. Visualize patterns.