Chapter 20 Flashcards
A property owner buys an adjacent parcel and combines it with the original parcel to create a property with a higher value than the total of the two separate property values. The operative principles of value in this situation is called ?
Assemblage
If a property owner buys an adjacent parcel and combines it with the original parcel to create a property with a higher value than the total of the two separate property values , the principles of value would be assemblage.
Salvage value refers to the nominal value of a property that has reached the end of its …
Economic life.
Salvage value ref to s to the nominal value of a property that has reached the end of its economic life.
A property’s market price is …
The highest price a buyer will pay and the lowest price the seller will accept.
Regardless of a property’s appraised or assessed value , the highest price a buyer will pay and the lowest price a seller will accept is the market price.
The principles or substitution is the major basis of which valuation approach ?
Sales comparison
The sales comparison approach is based on the principle of substitution .
When a buyer will not pay more for a home than he or she would pay for another equally desirable home , this is called the principle of ….
Substitution
This is a sales comparison approach is based on the substitution principle of value.
Noelle Value is appraising Bridgette Ohner’s apartment dimples using the income approach. To determine her property’s annual net operating income , Noelle must ….
Subtract the operating expenses from the effective gross income.
The extra value created by me thinking two parcels of land is called ….
Plotting value
When two adjacent parcels of land are joined together , the value of the one larder parcel may be greater than the value of the two separate parcels , with the extra value plottage value.
What is the first step in the cost valuation approach ?
Approximate land value as if it were vacant.
Which of the following problems would be an example of incurable depreciation?
Non air conditioned office complex
The income approach to determining value would best be used for which type or property?
Commercial
The income capitalization approach , or income approach , is best used to determine the value of commercial property as the is the type property that will produce income .
The value of a property used for add valorem taxation is called …
Assessed value
The value of a property as estimated by a taxing authority as the best for ad valorem
A property owner buys an adjacent parcel and combines it with its the original parcel to create a property with a higher value than the total of value he two separate property values. The operative principle of value in this situation is called ?
Assemblage
The COST APPROACH would be most reliable for which of these properties?
County court house
Indirect costs include …
Direct costs are called HARD costs and includes cost of labor and material. While indirect costs include costs for hat support a project.
Appraisal, Taxes during construction and Labor
The licensee should keep track of the pending sales and the active listings of the homes that he or she included in the CMA. This responsibility falls under …
Documentation
The responsibility of keeping track of the pending sales and the active listings of the homes that a licensee includes in the CMA falls under documentation.
