CHAPTER 18

Question 1

THE ACT OF COMBINING TWO OR MORE SEPARATELY OWNED PARCELS INTO ONE LARGER PARCEL TO INCREASE THE TOTAL VALUE

Answer 1

ASSEMBLAGE

Question 2

AN OPINION OF VALUE

Answer 2

APPRAISAL

Question 3

THE RATE OF RETURN TO THE OWNER FOR THE INVESTMENT IN PROPERTY, USED IN THE INCOME APPROACH IRV FOMULA TO ESTIMATE VALUE

Answer 3

CAPITALIZATION RATE

Question 4

SOMETIMES CALLED THE SQUARE FOOT METHOD, A TECHNIQUE TO ESTIMATE COST NEW ON AN OVERALL COST PER SQUARE FOOT BASIS

Answer 4

COMPARISON METHOD

Question 5

BUILDING COST NEW minus BUILDING DEPRECIATION plus SITE VALUE

Answer 5

COST APPROACH

Question 6

A LOSS IN VALUE AGAINST COST NEW CAUSED BY PHYSICAL DETERIORATION, FUNCTIONAL OR EXTERNAL OBSOLESCENCE

Answer 6

DEPRECIATION

Question 7

THE POTENTIAL USE OF THE PROPERTY THAT WOULD PRODUCE THE HIGHEST INCOME OR VALUE

Answer 7

HIGHEST AND BEST USE

Question 8

A PROCESS OF ESTIMATION VALUE BASED ON AN ANALYSIS OF INCOME IRV OR GRM

Answer 8

INCOME APPROACH

Question 9

THE INCOME APPROACH FOR SINGLE FAMILY RENTALS UP TO FOUR UNITS, GRM monthly rent=value

Answer 9

GROSS RENT MULTIPLIER

Question 10

INCOME REMAINING AFTER DEDUCTIONS FOR PROPERTY EXPENSES, USED IN THE INCOME APPROACH IRV FORMULA TO ESTIMATE VALUE

Answer 10

NET OPERATING INCOME