Term
| Four agents of production |
|
Definition
- Land
- Labor
- Capital
- Entrepreneurial coordination
|
|
|
Term
|
Definition
|
|
Term
|
Definition
| direct/indirect costs required to construct and market |
|
|
Term
|
Definition
| equipment, buildings, infrastructure |
|
|
Term
| Is value based on historical price? |
|
Definition
| Not usually..its is based on the market participants perceptions of future benefits |
|
|
Term
| Principal of Substitution |
|
Definition
when several similar or commensurate commodities, goods, or services are available, the one with the lowest price attracts the greatest demand and widest distribution
a buyer will not pay more for one property than for another that is equally desirable |
|
|
Term
|
Definition
| real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium |
|
|
Term
| Principal of Contribution |
|
Definition
| the value of a particular component is measured in terms of its contribution to the value of the whole property or as the amount that its absence would detract from the value of the whole |
|
|
Term
|
Definition
| the net income that remains after the costs of various agents of production have been paid |
|
|
Term
|
Definition
| appraisal practice that holds that real property value is created and sustained when the characteristics of a property conform to the demands of its market |
|
|
Term
|
Definition
| the value of an inferior property is enhanced by its association with better properties of the same type |
|
|
Term
|
Definition
| the value of a superior property is adversely affected by its association with an inferior property of the same type |
|
|
Term
| Forces that influence Real Property Markets |
|
Definition
- Social Forces
- Economic Circumstances
- Governmental Controls and Regulations
- Environmental Conditions
|
|
|
