Details Title: Real Estate Appraisal:2(Test 1) Description: 2-The Nature of Value Total Flash Cards: 19 Created: 09/29/2009 15:32:03		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Real Estate & Planning Flashcards
Cards in this set: Term The economic concept of value is created in... Definition the minds of the individuals who make up the market Term Four independent economic factors that create value.. Definition Utility Scarcity Desire Effective Purchasing Power Term Utility Definition ability of a product to satisfy a human want, need, or desire Term Can an object have value with only utility? Definition No...must have scarcity as well Term price Definition amound a particular purchaser agrees to pay and a particular seller agrees to accept under the circumstances surrounding their transaction Term cost Definition used in relation to production.... Term Value Definition anticipation of benefits to be obtained in the future Term market value 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 Term The USPAP requires that what items be cited in every appraisal report Definition specific property rights to be appraised statement of effective date of the value opinion cash, equivalent, or other terms if conditional upon financing  Term Fair Value 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 Term The highest and best use of the asset establishes the valuation premise used to measure the fair value of the asset, specifically: 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   Term Use Value Definition the value a specific preoperty has for a specific use ...excludes highest and best use and the value at sale Term What kind of properties are appraised at limited use? Definition limited-market Term Investment Value 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 Term What is the market value of a property with an indefinite life in which real estate is an integral part of ongoing business Definition business value or the going concern including real property, personal property, and the intangible assets of the business Term going concern Definition all tangible and intangible assets of an established and operating business with an indefinite life Term Public interest value is driven by... Definition social, political, and public policy goals Term assessed value Definition value of a property according to the tax roles in ad valorem taxation Term Insurable Value Definition value of asset that is covered by insurance