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Details Title: Florida Real Estate Description: Chapter 15 Total Flash Cards: 27 Created: 06/03/2005 11:35:22	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term appraisal Definition professional service provided by a registered license or certified appraiser Term assemblage Definition the combining of two or more adjoining properties into one tract Term cost depreciation approach Definition a method for estimating the market value of a property based on the costs to buy the site and to construct a new building on the site less depreciation Term curable Definition when the correction defect results in as much added value as a the cost to correct the defect Term depreciation Definition will a loss in value for any reason Term economic life Definition the period of time a property may be expected to be profitable or productive Term effective gross income Definition the resulting amounts when vacancy and collection losses are subtracted from potential gross income Term gross income multiplier Definition a rule of thumb for estimating the market value of a commercial and industrial properties: the ratio to convert annual income into market value Term gross rental multiplier Definition in a rule of thumb for estimating the market value of income-producing residential property and the ratio to convert rental income into market value Term highest and best use Definition a principal of value that focuses on the most profitable legal use to which a property to be put Term income capitalization approach Definition method for estimating the market value of a property based on the present and future income the property can be expected to generate Term incurable Definition when the cost to correct a defect is greater than the value added by the cure Term investment value Definition the worth of the property to a particular investor based his or her desired rate of return Term market value Definition the most probable price a property will bring from a fully informed buyer willing but not compelled to buy and the lowest price a fully informed seller will accept if not compelled to sell Term net operating income Definition the resulting amount when all operating expenses are subtracted from effective gross income Term overimprovement Definition in addition or change to property not in line with its highest and best use or a bettement that exceeds that justified by local conditions Term plottage Definition the added value as a result of combining two or more properties into one large parcel Term potential gross income Definition the total annual income a property would produce with 100 percent occupancy and no collection or vacancy losses Term progression Definition the principle that states that the value of an inferior property is enhanced eye its association with superior properties of the same type Term reconciliation Definition the process of wean the estimates of value derived from the sales comparison cost in income approaches to arrive and final estimate of market value Term regression Definition the principle that states that the value of the superior property is adversely affected by his association with inferior property of the same type Term replacement cost Definition the expenditure of constructing a building with current materials and techniques that has the same functional utility as a structure being appraised Term reproduction costs Definition amount required to duplicate the property exactly Term sales comparison approach Definition a method for estimating the market value of a property by comparing similar properties to the subject property Term situs Definition relationships and influences created by location of a property that affect value Term subject property Definition liberal property under discussion or appraisal Term vacancy and collection losses Definition the deduction from potential gross income for current or expected future space not rented due to tenet turnover and loss from uncollected rent due from delinquent tenets