Shared Flashcard Set

Details

Appraisal- Chap. 16
Essential of New Jersey Real Estate, 12th Edition
23
Real Estate & Planning
Not Applicable
10/11/2016

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
Amenity
 

 

Definition
extra that contributes to owner satisfaction: clean air, view, and so on
 

 

Term
Appraisal
 

 

Definition
process of estimating value
 

 

Term
Appraiser
 

 

Definition
an independent person trained to provide an unbiased estimate of value
 

 

Term
Capitalization rate
 

 

Definition
rate of return demanded by investors in a particular area
 

 

Term
Comparables
 

 

Definition
similar nearby property recently sold
 

 

Term
Cost approach
 

 

Definition
appraisal technique that analyzes the cost to build
 

 

Term
Depreciation
 

 

Definition
loss of value due to any cause
 

 

Term
External obsolescence
 

 

Definition
loss of value due to factors beyond the property boundaries
 

 

Term
Functional obsolescence
 

 

Definition
loss of value due to worn or outmoded features
 

 

Term
Gross income multiplier
 

 

Definition
analysis of income including rental and other factors
 

 

Term
Highest and best use
 

 

Definition
use of land that yields the most money
 

 

Term
Income approach
 

 

Definition
analysis of value of property using return on investment
 

 

Term
Market price
 

 

Definition
what a property actually sells for
 

 

Term
Market value
 

 

Definition
price that would be paid by an informed buyer
 

 

Term
Physical deterioration
 

 

Definition
loss of value due to wear and tear
 

 

Term
Reconciliation

 

 

Definition
analysis of values received by different appraisal approaches
 

 

Term
Replacement cost
 

 

Definition
cost to rebuild using today’s materials and techniques
 

 

Term
Reproduction cost
 

 

Definition
cost to rebuild exactly, using materials like the original
 

 

Term
Sales comparison approach
 

 

Definition
appraisal technique that analyzes sale prices of comparable properties
 

 

Term
Situs
 

 

Definition
location; buyers’ willingness to pay more for certain locations
 

 

Term
Subject property
 

 

Definition
parcel of real estate being appraised
 

 

Term
Substitution
 

 

Definition
principle that no one pays more if the same can be had for less
 

 

Term
Value
 

 

Definition
present worth of future benefits
 

 

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