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Definition
| Value is created by the anticipation of benefits to be derived in the future |
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Term
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Definition
| The dynamic nature of social, economic, governmental, and environmental forces that influence real property values accounts for change. |
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Term
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Definition
| when several similar or commensurate commodities, goods, or services are available , the one with the lowest price attracts the greatest demand. |
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Definition
| the value of a component part of a property depends on the amount it contributes to the value of the whole. |
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| What is contribution closely related to? |
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Definition
| diminishing marginal utility |
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Term
| Which 1989 Act provides federal appraisal guidelines? |
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Definition
| Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) |
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Term
| What is the Appraisal Foundation |
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Definition
| nonprofit educational organization founded in 1987 |
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| Appraisal Foundation includes what two entities? |
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Definition
1. Appraisal Qualifications Board
2. Appraisal Standards Board |
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Term
| What is the purpose of the Appraisal Qualifications Board |
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Definition
| establishes minimum education and certification |
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Term
| What is the purpose of the Appraisal Standards Board? |
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Definition
| established Uniform Standards of Professional Appraisal Practice |
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Term
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Definition
1. Trainee
2.Licensed residential or Real Property Appraiser
3. certified Residential appraiser
4. Certified General Appraiser |
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Term
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Definition
| 75hrs of classroom, generally has 2yrs experience |
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Term
| Licensed Residential or Real Property Appraiser |
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Definition
| 1-4 unit properties, < $1M, 150 hrs, exam, 2000 hrs experience in no less than 12 months. |
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Term
| certified Residential Appraiser |
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Definition
| 1-4 Unit residential properties, limitless value, 200 hrs, exam, 2500 hrs experience in no more than 24 mo. |
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Term
| Certified General Appraiser |
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Definition
| any type of real property, 300 hrs, exam, 3000hrs in no less than 30 mo. |
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Term
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Definition
1. ID Problem
2. Scope of Work determination
3. Data Collection and property description
4. Data Analysis
5. Site Value Opinion
6. Application of approaches
7. reconciliation of the value indications and Final Opinion
8. Report of Defined Value |
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Term
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Definition
1. Tax-Assessed
2. comparable Price
3. Market Price
4. Reservation Price
5. Transaction Price |
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Term
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Definition
| most probable price which a property should bring in a competitive market, under all conditions requisit to a fair sale with the buyer and seller acting prudently. |
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Term
| Under Fair Market value both parties must be: |
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Definition
| motivated, well-informed, payment in cash, no special circumstances, reasonable time on the market |
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Term
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Definition
| Competitive Market Analysis |
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Term
| Key Economic factors to Appraisal: |
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Definition
| anticipation, change, substitution, contribution |
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Term
| Data Collection and Property description contains what? |
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Definition
| Market area data, subject property data, comparables |
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Term
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Definition
| Market analysis, Highest and Best use |
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Term
| Categories of Highest and best use |
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Definition
| vacant, ideal improvement, property as is improved |
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Term
| Three approaches to valuation methods: |
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Definition
| Sales comparison, cost Approach, Income Capitalization |
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Term
| Sales Comparison Approach |
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Definition
comps sold today to 6 months ago
most common for single family homes
substitutability
adjust transaction price of the comparable |
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Term
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Definition
estimate cost to produce
subtract depreciation
estimate and add site as vacant |
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Term
| Income approach is directly related to what? |
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Definition
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Term
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Definition
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Term
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Definition
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Term
| Gross Income Multiplier = |
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Definition
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Term
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Definition
| Single family, multifamily, Manufactured Homes, Second Homes |
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Term
| Two categories of Single Family houses: |
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Definition
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Term
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Definition
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Term
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Definition
1. Apartments and residential
2. Retail
3. Storage
4. Office
5. Industrial
6. Hospitality
7. Golf |
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Term
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Definition
| involve transactions for the rights to use land and buildings. Price is often called rent. |
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Term
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Definition
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Term
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Definition
| Freestanding, neighborhood center, Community center, Regional center, Super-regional center |
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Term
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Definition
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Term
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Definition
| aka convenience center, 1.5 mi. radius, serves 2500-40000,anchor tenant (primary)is a supermarket, strip style, L or straight, customer parking |
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Term
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Definition
| 3-5 mi. radius, anchor is a discount or junior department store, (Discount Center) |
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Term
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Definition
| 7-12 mi. radius, full range of goods and services, enclosed malls, full-line department stores as anchors |
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Definition
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Definition
| big box retailers, i.e.-Target, Best buy, Lowes, etc.. |
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Definition
| more open, gets people out walking |
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Term
| Basic inputs to Market Analysis: |
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Definition
1. Vacancy Rate
2. Rent or price level
3. quantity of new construction started
4. quantity of new construction completed
5. absorption of new space |
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Term
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Definition
| unoccupied space / total space |
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Term
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Definition
rate at which new supply is being occupied.
one of the best indicatiors of the demand side conditions in the space market |
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Term
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Definition
| tells us how long it will take in months for all the vacant space in the market to be absorbed at the current rate of absorption. |
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Term
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Definition
| (vacant Space + Space in construction) /Net Absorption per Month |
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Term
| Price determinants in asset market |
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Definition
opportunity cost of capital
growth expectations
risk |
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Term
| Categories of Capital Asset Markets: |
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Definition
| Public vs Private; Asset vs. Debt |
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Term
| Real Estate Investment Trust |
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Definition
| (REIT)raise money from the sale of shares to investors and then use the proceeds to acquire properties and mortgages. (Public/Asset) |
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Term
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Definition
diversification
small investment
relatively even cash flows
Professional money management
limited liability
passive investment |
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Term
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Definition
| Rapid economic and population growth generally results as a result of this |
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Definition
| How the city and people in it are able create goods for export as well as population serving activities; relies heavily on substitution |
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| Synonym for Export activities |
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Definition
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| Synonym for population-serving activities |
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Definition
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| Most export activities include: |
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Definition
| agriculture, mining, manufacturing, and wholesale trade |
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Term
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Definition
| the proportion to which land values increase or decrease based on distance from the Central Business District (CBD) |
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Term
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Definition
| small urban/rural area within which residents receive and perceive a common set of socioeconomic effects and services |
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Term
| 7 Phases of the Neighborhood life-cycle |
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Definition
Gestation
Youth
Maturity
Incipient (initial decline)
Decline
Accelerated Decline
Abandonment |
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