APPRAISAL & LAND USE Flashcards
Ad valorem
Latin Prefix/ Assessed value / property taxes
Assessed Value
Value of the property by a Public Tax Assessor as a basis for taxation.
Operating Expenses
Expenditures necessary to the operation of an income-producing building.
corner lot
a lot found at the intersection of the two street
Market rent
A rent a property bring in the open market
Gross rent
Income received from rental units before any expenses are deducted.
Accrued Depreciation
Difference between the cost of replacing the property and the appraised value of the property.
GRM
a figure when multiplied by the monthly rental home equal to the property ‘s market value.
GIM
Sales price of the comparable Rental properties divided by their gross rent and any other income. Then it is multiplied by the estimated gross rent of the subject to estimate its value.
Book Value
The initial cost of the property + capital improvement - Total Accrued depreciation
Effective Age
years or age shown by the condition and utility of a structure,Rather than its actual or chronological age.
Effective demand
The desire coupled with purchasing power.
Sales Comparison approach
Appraisal method using the principle of substitution to compare similar properties.
Effective gross income
potential gross RENTAL income + other income - vacancy and bad debts
Variance
An exception granted to existing zoning regulations for special reasons
Fiscal Year
a year as reckoned for taxing or accounting purposes. ( company or government uses. )
4 demand that create value
- Demand ,Utility, Scarcity, Transferability.
NET income
Gross Income of the property - operating expenses
Contract Rent
The amount of the rental income due from the tenant as agreed in the lease agreement.
Reconciliation
correlation/ adjustment process of results of 3 appraisal methods to arrive at the final estimate of market value for the subject property.
comps
used by real estate agents & appraisers to mean comparable properties.
Cost Approach
Replacement cost of the improvement - accrued depreciation + market value of the LAND
Cul-De-sac LOT
A lot on a dead end street.
