Chapter 16 vocab Flashcards
an opinion of value based on supportable evidence and approved methods
Appraisal
an independent professional who is trained to provide an unbiased estimate of value
Appraiser
A way to estimate value based on the present worth of the rights to future income
Income approach
The most probable price that a property should bring in a fair sale
Market value
The principle that value is created by the expectation that certain events will occur
Anticipation
The principle that no physical or economic condition remains constant
Change
The principle that value is created when a property is in harmony with its surroundings
Conformity
The principle that the value of any part of a property is measured by its affect on the value of the whole property
Contribution
The most profitable single used to which property may legally, physically, and financially be put
Highest and best use
The process of merging to separately on the lights under one owner
assemblage
The principle that merging or consolidating adjacent lots into a single one, will produce a higher total value, than the sum of the two sites valued separately
Plottage
The principle that the worth of a better quality property is adversely affected by the presence of a nearby lesser-quality property
Regression
The principle that the maximum value of a property tends to be set by how much it would cost to purchase an equally desirable property
Substitution
The economic principle that the value of a property depends on the number of similar properties available in the marketplace
Supply and demand
The approach that estimates value by comparing the subject property with recently sold similar properties
Sales comparison
