Term
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Definition
1.Social
2.Economic
3.Political/Governmental
4.Physical/Environmental |
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Term
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Definition
Population
Avg. Family Size
Demographics |
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Term
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Definition
Cost of Construction materials
Labor Costs
Tax Rates
Interest Rates
Commercial, Industrial Trends |
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Term
| Political/Governmental Forces |
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Definition
Building Codes
Zoning Ordinances
Police and Fire Protection
Monetary Policy |
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Term
| Physical and Environmental Forces |
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Definition
Topogrophy
Climate
Soil Characteristics
Mineral Resources
Location to shopping Centers |
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Term
| Factors that Create Value |
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Definition
Utility
Effective Demand
Relative Scarcity
Transferability
Purchasing Power |
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Term
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Definition
1. Identify all observations for physical depreciation and functional obsolescence.
2. Aid in selection of other comparable properties for sales comparison approach.
3. Quality of features and materials.
4. Check design of building. |
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Term
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Definition
1. Highest and Best Use
2. Substitution
3. Conformity
4. Progression and Regression
5. Competition
6. Anticipation
7. Contribution/Balance
8. Four Forces of Production
9. Integration/Disintegration.
10. Change |
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Term
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Definition
1. Between purchasers or tenants.
2. Between Sellers or Landlords.
3. Among competitive properties.
Profit tends to encourage competition
Too many competitors, drive down profit |
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Term
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Definition
When several similar or similar commodities, goods, or services are available, the one with the lowest price will attract the greatest demand and widest distribution.
Cost of building a new house, tied to cost of existing houses |
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Term
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Definition
| The perception that value is created by the expectation of benefits to be derived in the future. |
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Term
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Definition
| The ability of a product to satisfy a human want, need, or desire. |
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Term
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Definition
| The present or anticipated undersupply of an item relative to the demand for it. Conditions of scarcity contribute to value |
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Term
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Definition
| Neighborhood lacks conformity will drive prices down. |
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Term
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Definition
| Lifting property Values. ex: Ugly house in a neighborhood of all Nice houses drives the value up. |
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Term
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Definition
| Lowering of property values. Ex: All ugly houses and 1 nice house, will drive price down. |
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Term
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Definition
| Each of the 4 agents must be in balance with eachother |
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Term
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Definition
| Property on incline, growing in value, Beginning of physical life. |
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Term
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Definition
| Property on decline, end of economic life. |
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Term
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Definition
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Term
| 3 Approaches to determining value |
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Definition
1. Sales comparison approach
2. Cost Approach
3. Income Approach |
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Term
| Sales comparison approach is best for what type of property? |
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Definition
| Single Family Residential |
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Term
| The Cost Approach is best for what type of property? |
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Definition
| New Construction and Special Use Property |
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Term
| Income Approach is best for what type of property? |
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Definition
| Best for properties that generate income. |
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Term
| What does URAR stand for? |
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Definition
| Uniform Residential Appraisal Report |
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Term
| What are purposes of the URAR? |
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Definition
1. For use when applying for a mortgage
2. When one side has more information than the other.
3. Bank wants information about house to give loan.
4. To Standardize the information to create an efficient market.
5. Summary of appraisal process. |
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Term
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Definition
Look at employment opportunities.
Basic Employment - Provides $ for Region
Nonbasic employment - Provides $ outside of region. |
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Term
| Characteristics that effect Demand |
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Definition
Population
Geography
Land use and City Growth
Types of Services and Transportation
Sources and levels of employment
Wage Rates and Disposable income
Financial Services
Cultural institutions
Educational Facilities
Health and Medical Services
Fire and Police
Tax Structure |
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Term
| Characteristics that effect supply |
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Definition
Volume of new construction
Construction Cost
Avalability of vacant lots
Volume and availability of exisiting housing
owner vs. tenant occupancy
Causes and amount of vacancy
impact of building codes and zoning ordinances. |
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Term
| Highest and Best Use 4 Tests. |
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Definition
1. Legally Permissible?
2. Physically Possible?
3. Financially Feasible?
4. Maximally Productive? |
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Term
| Special situations in Highest and Best Use analysis. |
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Definition
1. Interim Uses
2. Legally Non-conforming uses
3. Excess and Surplus land/ Transitional Neighborhoods. |
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Term
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Definition
| Area of a home containing bedrooms, bathrooms, and dressing rooms. |
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Term
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Definition
| Area of home containing the living room or great room, dining room, family or recreation rooms, den and any enclosed porches. |
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Term
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Definition
| Area of a home containing the kitchen, pantry, laundry and other work areas. |
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Term
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Definition
Sq. Footage
Lot Size
Architectual Style
Amenitiies
Location
# of bedrooms and bathrooms
Floorplan
Heating System
Condition
Garage
Landscaping
Quality of materials, workmanship
Date of Sale
Financing Used |
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