Appraisal Flashcards
Principle of Conformity
Maximum value found when there is a reasonable degree of similarity or homogeneity
GIM
Factor based on location and rent
Price per annual rent used to give an initial estimate of value for a commercial property
Square Footage
The finished space of a structure measured by the exterior walls
Straight Line Method
Depreciation of annual installment amounts
Depreciated Value
Original cost less the depreciation
Module
A unit of prefabricated housing
Offsite construction
Collateral
Something of value pledged as security for a loan
Indestructibility
Physical characteristic of land
Land will always be there, it’s durable
Up and Coming Neighborhood
neighborhood in the revitalization stage of the life cycle
Market Value
The price a willing seller will sell for and a willing buyer will pay when neither is acting under exceptional pressure
Most probable price
Life Cycle
The stages of growth and development of a community
Grow, Stabilize, Decline, Revitalize
Principle of Competition
Increased competition results in decreased profits
Principle of Progression
Higher valued properties in neighborhood lead to an increase in value of subject property
Gross Area
The area of a building under the roof
Includes unfinished areas
Handicapped
Mental or physical impairments
Recovering drug users, recovering alcoholics and HIV/Aida victims
