Section 6 - Chapter 19 Flashcards Preview

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Flashcards in Section 6 - Chapter 19 Deck (23):
1

appraisal

opinion of value based on supportable evidence

2

uspap

uniform standards of professional appraisal practice; appraisal qualifications board basic guidelines

3

cma

competitive market analysis; based on solds, on market, and expireds

4

bpo

broker's price opinion; less expensive alternaitive to value property

5

4 characteristics of value:

DUST; demand, utility, scarcity, transferability

6

market value

reasonable opinoin of property's value

7

market price;

actual selling price of a property

8

cost

may not equal either market value or market price

9

anticipation:

value increases or decrases based on future events

10

change

real estate mraket changes randomly

11

competition

interaction of supply and demand

12

conformity

maximum value when home is in harmony with surroundings

13

contribution;

value of any one part measured by the effect on the whole

14

highest and best use:

most profitable single use to which a property may be put

15

assemblage:

process of merging 2 separately owned lots under one owner

16

plottage:

amount that value is increased by successful assemblage

17

regression and progression

lowering or raising of value based on neighbors

18

substitution;

max value of a house set by how much it would cost to buy an equal substitue

19

sales comparision approach:

compare your property to other comps just sold

20

cost approach:

value based on how much to rebuild based on vacant land

21

depreciation

loss in value due to any cause compared to what it would cost to replace today

22

income approach:

value based on present value of rights to future income

23

reconciliation

analyzing and weighing the results of the 3 approaches to finding value