Term
| The economic concept of value is created in... |
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Definition
| the minds of the individuals who make up the market |
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Term
| Four independent economic factors that create value.. |
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Definition
- Utility
- Scarcity
- Desire
- Effective Purchasing Power
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Term
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Definition
| ability of a product to satisfy a human want, need, or desire |
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Term
| Can an object have value with only utility? |
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Definition
| No...must have scarcity as well |
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Term
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Definition
| amound a particular purchaser agrees to pay and a particular seller agrees to accept under the circumstances surrounding their transaction |
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Term
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Definition
| used in relation to production.... |
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Term
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Definition
| anticipation of benefits to be obtained in the future |
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Term
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Definition
| most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress |
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Term
| The USPAP requires that what items be cited in every appraisal report |
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Definition
- specific property rights to be appraised
- statement of effective date of the value opinion
- cash, equivalent, or other terms
- if conditional upon financing
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Term
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Definition
| the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date |
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Term
| The highest and best use of the asset establishes the valuation premise used to measure the fair value of the asset, specifically: |
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Definition
- In Use: The highest and best use of the asset in use would provide maximum value to market participants principally through its use in combination with other assets as a group
- In Exchange: The highest and best use of the asset is in exchange if the asset would provide maximum value to market participants principally on a stand alone basis
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Term
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Definition
| the value a specific preoperty has for a specific use ...excludes highest and best use and the value at sale |
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Term
| What kind of properties are appraised at limited use? |
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Definition
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Term
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Definition
| value of a specific property to a particular investor.....price an investor would pay for an investment in light of its perceived capacity to satisfy that individuals desires, needs, or investment goals |
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Term
| What is the market value of a property with an indefinite life in which real estate is an integral part of ongoing business |
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Definition
| business value or the going concern including real property, personal property, and the intangible assets of the business |
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Term
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Definition
| all tangible and intangible assets of an established and operating business with an indefinite life |
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Term
| Public interest value is driven by... |
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Definition
| social, political, and public policy goals |
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Term
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Definition
| value of a property according to the tax roles in ad valorem taxation |
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Term
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Definition
| value of asset that is covered by insurance |
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