unit 9

Question 1

property valuation

Answer 1

process of estimating the value of real property

Question 2

Land

Answer 2

Ground and what is below and above it. (eg, soil, sand, gravel)

Question 3

real estate

Answer 3

unimproved RAW land, buildings other fixed improvements to the land

Question 4

real property

Answer 4

land, any permanent improvements, and property rights go with the land’s ownership.

Question 5

process of determing assessed property values by collecting relevent sales date over a specific time for the same type of property in a similar area

Answer 5

mass appraisal

Question 6

comparative market analysis

Answer 6

compares recent sales of similar properties in same area as the subject property.
Usually for residental

Question 7

income analysis

Answer 7

examines the revenue and expenses associated with the subject property and arrives at a calculation

Question 8

cost analysis

Answer 8

relies on solid and in-depth knowledge of the cost of construction

Question 9

retrospective

Answer 9

estimating property value from the past

Question 10

prospective

Answer 10

forecasting future property values

Question 11

commodity

Answer 11

raw material or product that is bought and sold

Question 12

individuals estimate of value a particular item. Personal estimate of. the current/future benefits of the team based on EMOTION

Answer 12

subjective value

Question 13

objective value

Answer 13

the cost of the land plus the cost of creating any buildings

Question 14

value in use

Answer 14

an individual may pay more for a property if it has a specific us than a typical buyer would

Question 15

based on replacement or reporodction costs of all aspects of property that may be damaged/destroyed

Answer 15

insurable value

Question 16

market price

Answer 16

amount of money paid for a particular property because of a real estate transaction

Question 17

buyers market

Answer 17

when market supply is strong and buyer demand is weak

Question 18

seller’s market

Answer 18

demand from buyers is strong and the supply available is low

Question 19

substitution

Answer 19

buyer will not pay more for a property than the cost

Question 20

contribution

Answer 20

value of a property (features) make the overall value go up

Question 21

progression
regression

Answer 21

when properties in the same area have lesser value, they will be increased in value by their close proximity to others with greater value

Question 22

anticipation

Answer 22

paying more for certain property because it’s worth what they’re looking for and will benefit them in the future.

Question 23

provides bare. essentials, helps real estate apprasials to quickly complete the report & helps readers of the report to quickly relocate info

Answer 23

form report

Question 24

a brief statement of a real estate appraisals estimate of value

Answer 24

letter of opinion

Question 25

the full report, describes the area analysis in detail, identifies & fully describes the subject property, identifies approaches used, and explains the reasoning behind the final estimate

Answer 25

narrative report

Question 26

Matters of property the crown typically refers to?

Answer 26

Provincial gov

Question 27

fixed capital working capital

Answer 27

includes plant, machinery, equipment, factories inventories of finished and semi-finished goods

Question 28

principle of increase and decrease

Answer 28

Receive more value to the property when you repair/update something. But if you add something again which is not relevant will not boost value.

Question 29

direct comparison approach

Answer 29

direct comparison of the subject property to similar properties in the same area that have recently sold

Question 30

used when estimating the replacement reproduction value of a property.

Answer 30

cost approach

Question 31

provide an estimate of value for income-producing properties. (Revenue properties)

Answer 31

income approach

Question 32

two main categories of data used by real estate appraisers

Answer 32

general, specific

Question 33

area life cycle stages

Answer 33

growth, stability, decline

Question 34

characteristics of value in relation to commodity

Answer 34

utility, scarcity,marketability

Question 35

buyers market =

Answer 35

supply is high, buyer demand is weak which decreases prices

Question 36

sellers market=

Answer 36

supply is low, buyer demand is high which increases prices.

Question 37

which principle of value allows adjustments to be made to the sale prive of comparable properties?

Answer 37

contributions

Question 38

which principle of value explains the interaction of buyers and sellers in marketplace?

Answer 38

supply and demand

Question 39

which principle of value should real estate prof keep in mind when helping owners determine an asking price

Answer 39

substitution

Question 40

which principle of value is represented by the formula, net income-operational expenses

Answer 40

principle of surplus productivity

Question 41

what is included when valuing a real estate property

Answer 41

fixed approvement, property rights, surface resources