Assessment of Property Value Flashcards
What is most important in Real Estate?
Location, Location, Location
What are four areas of depreciation?
A. Physical deterioration - wear and tear
B. Functional obsolescence - how well does it function
C. Economic obsolescence - factors outside boundaries (airport, busy highway)
D. Curability
What does Curability mean?
A repair that can be fixed and can add value
What results in the greatest amount of income for the longest period of time?
When a property is at its “Highest and Best Use”
Comparative (Sales) Market Approach
Salesperson - No Fee
Broker - Yes Fee
Disclaimer, not an appraiser
What are the 3 steps in a cost approach?
Calculate:
- Reproduction - Cost to rebuild the exact house;
- Replacement - same as above, with different materials
- Depreciation Factored in (Cap Rate)
What is the income approach formula?
Net Income/Value = Cap Rate
Base/Part = Rate
Gross Rent Multiplier formula
Value/Gross Income = GRM
What is an emblement?
Crops
What are four types of Personal Property?
a. Emblements;
b. Trade fixtures - commercial
c. Non-attached fixtures
d. Manufactured Home - until placed on foundation
What is included in your property rights?
a. Minerals
b. Riparian or Littoral
c. Air Rights - Reasonable
What is Riparian?
Rivers and Streams -
Own to the center of the water
What is Littoral
Lakes and Large Rivers - Own to waters edge or vegetation
A Township measures what?
6 x 6 miles
36 sections
A section is/has what
1 square mile
640 acres
