Term
| The Valuation Process is .... |
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Definition
| ...a systematic set of procedures an appraiser follows to provide answers to a clients questions about real property value |
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Term
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Definition
value is estimated as the current cost of reproduction or replacing the improvements minus the loss in value from deprecation plus land or site value.
Cost of Reproduction
-Depreciation
+Site Value
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Value
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Term
| In the sales comparison approach... |
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Definition
| value is indicated by recent sales of comparable properties in the market and other supporting transactional information |
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Term
| In the income capitalization approach... |
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Definition
| value is indicated by a property's earning power, based on the capitalization of income |
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Term
| What is the first step in the valuation process? |
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Definition
| development of a clear understanding of the problem to be solved |
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Term
| Factors in identifying the appraisal problem... |
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Definition
- client
- intended users
- intended use
- type of value
- effective date
- characteristics of property
- assignment conditions
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Term
| Intended uses of an appraisal relate to... |
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Definition
- Financing
- Litigation
- Condemnation
- Divorce Proceedings
- Buy/sell
- Tax Reporting
- Portfolio Evaluation
- Arbitration
- Partnership Valuation
- Estate Value
- Charitable Donation
- Financial Reporting
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Term
| Date of the Opinion of Value |
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Definition
| date for which an opinion is valid |
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Term
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Definition
- Rights being appraised
- location
- Size, layout, quality
- Rent, Financing Terms
- Legal(Zoning)
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Term
| Scope of work is acceptable if.... |
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Definition
- it leads to credible assingment results
- consistent with the expectations of parties who are regularly intended users for similar assignments
- consistent with what the actions of the appraisers peers would be in the same or a similar assingment
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Term
| The scope of work discussion should address the following topic areas.... |
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Definition
- The extent to which the property was identified
- The extent to which the property was inspected
- The type and extent of data researched
- The type and extent of analyses applied
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Term
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Definition
- includes info about trends in the social, economic, governmental, and environmental forces that affect property value in the defined market area
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Term
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Definition
relates to the property being appraised and to comparable properties
- legal
- physical
- locational
- cost
- income/expense
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Term
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Definition
study of market conditions for a specific type of property
- bacground against which local developments are considered
- knowledge of the broad changes that affect supply and demand
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Term
| For each of the valuation methods...why is Market Analysis important |
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Definition
- Cost Approach: provides basis for adjusting the cost of the subject property for depreciation
- Income Cap: all the necessary income, expense, and rate data is evaluated in light of the market forces of supply and demand
- Sales Comparison: conclusions of market analysis are used to delineate the market and thereby identify comparable properties
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Term
| Reason to analyze highest and best use as though vacant.. |
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Definition
- helps identify comparable properties
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Term
| Reason to analyze highest and best use as though improved.. |
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Definition
- identify potentially comparables
- decide which option to persue..
- Maintian
- Cure items of defered maintenance and retain improvements
- Modify improvements
- Demolish
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Term
The highest and best use conclusion should
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Definition
| specify the optimal use, when the property will be put to this use or achieve stabilized occupancy, and who would be the most likely purchaser or user of the property |
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Term
| What is the most reliable way to estimate land value? |
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Definition
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Term
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Definition
| last phase of any valuation assignment in which two or more value indications derived from market data are resolved into a fair value opinion, which may be eithet a final range of value or a single point estimate |
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