Chapter 10 - Appraisal Basics Flashcards
Market ______ (selling price) is the total price, including down payment and financing, that a property actually brought when sold.
Market price; it’s what the property sold for.
Market ______ is the price that a willing buyer will pay and a willing seller accept, both being fully informed and wight he sale property exposed for a reasonable period.
Market value; it’s what the property is actually worth.
What are the 4 essential characteristics of value? DUST
Demand, Utility, Scarcity, and Transferability. Remember that cost or expectation are both NOT part of value.
The primary purpose of an appraisal is for _____ and _____ use.
Highest and Best Use
The current use when it’s expect to change afterwards is called what?
Interim use
What are the four considerations that can change the value of a neighborhood?
Social, political, and economical influences. Also, private deed restrictions.
_______ occurs as a result of a lack of property maintenance in a neighborhood.
blight
____________ is the rehabilitation of a blighted neighborhood.
Gentrification
If more people own homes in a neighborhood versus rent, the area is more/less stable.
MORE
There are six different types of lots:
a. Cul-de-sac
b. corner
c. key
d. t-intersection
e. interior
f. flag
When two or more contiguous properties are joined to make one proper, and become more valuable than the sum of the properties separately, it is called ________.
plottage
The ____ and _____ sides of streets are preferred by merchants because pedestrians seek the shady side and displayed merchandise is not damaged by the sun. The _____________ corner is the least desirable.
South and West sides / Northeast
Most people prefer the sun to shine on their backyard, so the backyard should face the ____ or the _____.
South or the West.
When the bet property in the neighborhood is adversely affected by the presence of a substandard property, it is called __________.
Regression
