Chapter 13 Flashcards
The monetary relationship between properties and those who buy, sell, or use those properties.
Value
what a property is worth
Value
The amount asked, offered, or paid for a property.
Price
The total dollar expenditure to develop an improvement (structure); applies to either reproduction of an identical improvement or replacement with a functional equivalent, not exchange (price).
Cost
The most common type of value sought by real property appraisers is
Market Value
the major focus of most real property appraisal assignments.
Market value
A transaction between unrelated parties under no duress
Arms-length transaction
a retrospective opinion developed by the appraiser based on an analysis of past events assuming a competitive and open market
Exposure Time
The time a property remains on the market.
Exposure Time
Attribution of value to goods or services based on what can be obtained for them in exchange for other goods and services.
Value in exchange
Market value is an example of :
Value in exchange
The value of a property assuming a specific use, which may or may not be the property’s highest and best use on the effective date of the appraisal.
Value in use
Value in use may come into play when appraising
commercial or industrial properties
The value of a property interest to a particular investor or class of investors based on the investor’s specific requirements.
Investment Value
“A type of value for insurance purposes.”
Insurable value
A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable to a favorable lease or mortgage, the value attributable to goodwill.
Intangible value
The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern.
Going concern value
Monetary worth attributed to features that have no measurable worth in the market but may benefit the public or a specific segment of the public.
Public Interest Value
The capital amount at which property is shown on the account books of a corporation or individual.
Book Value
The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere
Salvage Value
A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer’s mortgage company appraises the home at $525,000. The sales contract for $560,000 represents the __________ of the property.
Price
Once stated, price is ________.
fact
The monetary relationship between properties and those who buy, sell, or use those properties” is the definition of
Value
A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer’s mortgage company appraises the home at $525,000. The appraiser’s opinion of $525,000 represents the _________ of the property.
Value
It would take $275,000 to produce a single-family home on the owner’s lot. This $275,000 figure represents the home’s
cost
The most common type of value sought by appraisers is
market value
Which type of value begins with “the most probable price that a property should sell for…
market value
A value that cannot be imputed to any part of the physical property is called ___________ value.
intangible
The market value definition says that __________ is allowed for exposure in the open market.
a reasonable time
An artificial amount that is constructed using accounting procedures is called ________ value.
book
The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere” is the definition of ____________ value.
salvage
A bank acquires a property at foreclosure, and they need to sell it very quickly. They ask an appraiser to provide them a value opinion based on a restricted marketing time, and considering they are under extreme compulsion to sell. What type of value is this client asking for?
liquidation value
The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere” is the definition of ____________ value.
salvage
A property owner has a long-term lease on the property with a tenant who is paying $12 per square foot, but the market rental rate for this space is $8 per square foot. This is an example of
intangible value
The most common market value definitions specify payment in terms of ____________ or in terms of financial arrangements.
cash in US dollars
