Chapter 1 Flashcards
- A group of complementary land uses
-a congruous grouping of inhabitants, buildings or business enterprises
Neighborhood
-Geographic region
-from which majority of demand comes
-majority of competition is located.
Market area
Depending on the market, a market area may be further subdivided into components such as
-primary
-secondary
-tertiary market areas
A neighborhood characterized by homogeneous land use
District
The separation and identification of the parts of the whole
Analysis
-people will purchase real estate
-based upon the assumption
-they will receive certain benefits
-from the ownership of that property
Anticipation
The principle of anticipation is very often associated with
the income approach
The principle of anticipation is also related to the principles of:
-supply and demand
-competition
-change
When supply and demand for a product
or a specific type of property
are in harmony
it is said that _______ exists
Balanced situation
The principle of balance
is closely related to
the following principles
-Four agents of production
-Conformity
-contribution
-surplus productivity
The principle of ______ emphatically states that nothing ever remains “static” or in balance.
Change
Because of the principle of _____, the appraiser’s opinion of value is always “as of” a specific date.
Change
The principle of change is related to the following principles:
Anticipation
Supply and demand
Inclining and declining periods
The public, in terms of home ownership, tends to locate in areas that will
insulate them from adverse conditions
When protection from detrimental conditions and a pleasant mix of property styles and sizes are present, property values are enhanced. This homogenous neighborhood is said to be
in conformity.
the principle of conformity is related to the following principles:
Balance
Progression and regression
Contribution
_______will ultimately determine what a given amenity will contribute to the overall property value.
Market participants (buyers and sellers)
What principle is most often associated with the Sales Comparison approach to value?
Contribution
The principle of ________ takes into consideration the external factors that relate to a given proeprty.
Externalities
What are the four agents of Production
-Land
-Labor
-Capital
-Coordination
Real Property contains a mix of the _____________
Four agents of production
Inclining and declining periods
The four stages of the life cycle are?
-Growth
-stability
-decline
-revitalization
The process of Revitalization is also called?
Gentrification
When an appraiser is analyzing the subject property’s market area, which question is most likely to be asked?
What defines the boundaries of the subject property’s neighborhood?
A propety owner constructs a six-car garage at a cost of $80,000. It only adds $40,0000 in value to the property. What economic principle does this best demonstrate?
Contribution
The value of a fireplace in a single-family home is determined by:
what a buyer perceives as its worth, and how much he will pay for it
Which of these can increase conformity in a neighborhood?
-Covenants, Conditions, and Restrictions
-Zoning ordinances
-Ordnances specifying minimum site sizes and setbacks
-all of these
All of these
