Chapter 6 Vocabulary Flashcards
Amenities:
A. Features of a property that add value or desirability.
B. Property that is portable or unattached to the real estate.
C. Common elements of the condominium that are identifies in the declaration or plat as reserved for the exclusive use of one or more unit owner.
D. An article that was once personal property but has been so affixed to real estate that it has become real property.
A. Features of a property that add value or desirability. Amenities can be either tangible, such as a skylight, or intangible, such as an ocean view.
Market analysis (market data approach):
A. An opinion of value provided by an appraiser.
B. A fact or condition incompatible with another.
C. The maximum value of a property that is realized when the other properties in the neighborhood are similar.
D. A study of a property by a real estate agent or appraiser to establish a likely selling price of the property.
D. A study of a property by a real estate agent or appraiser to establish a likely selling price of the property. It involves a study of recent sales in the market area that are similar to the subject property based on location, terms, physical features and date of sale.
Market value:
A. The excess of a property’s fair market value over the outstanding debts.
B. A property that is in demand by buyers or employers.
C. The price at which a property would sell on the open market to a buyer who is not under duress, not related to the seller, is well informed about the property and who has been found within a reasonable amount of time.
D. An appraisal theory that a value placed on a property is good for a snapshot in time because no physical or economic condition remains the same.
C. The price at which a property would sell on the open market to a buyer who is not under duress, not related to the seller, is well informed about the property and who has been found within a reasonable amount of time
Contribution:
A. Up-front cash or item of value from the potential buyer that indicates an intention to make good on an offer to purchase.
B. A sum of money or time donated to a charitable organization.
C. The right held by a property owner to lease, sell or will the property away.
D. Any component to a property is worth only what it adds to the property’s value regardless of the cost of the improvement.
D. Any component to a property is worth only what it adds to the property’s value regardless of the cost of the improvements.
Cost:
A. A lump-sum payment due at the end of a mortgage contract period.
B. The current reproduction cost of a building plus the value of the land tends to set the upper limit of a property’s value.
C. Causing people to lose something or to suffer.
D. The amount owed to a firm as payment for services rendered in in connection with a listing contract or buyer agency agreement.
B. The current reproduction cost of a building plus the value of the land tends to set the upper limit of a property’s value.
Active property:
A. Property currently for sale.
B. An item of moveable personal property, such as furniture and draperies.
C. A property that was listed for sale but did not sell during the term of the listing contract.
D. A classification of property ownership recognized in Wisconsin.
A. Property currently for sale.
Decreasing returns:
A. The practice of exploiting racial prejudices and the fear of a general decline in a neighborhood’s real estate values to induce homeowners to sell their properties at a low price.
B. When consumers purchase fewer products, the number of returns decreases.
C. The value of a lesser property decreases the value of a better property.
D. Decreasing returns are demonstrated by an over-improved property when the costs of the improvements are not likely to be recoverable upon sale.
D. Decreasing returns are demonstrated by an over-improved property when the costs of the improvements are not likely to be recoverable upon sale.
Anticipation:
A. Future physical, economic, social or political changes that may affect present value of property.
B. An addition to property by the act of joining one thing to another.
C. The feeling of being blown away and shocked by something.
D. Any fact that is relevant to a person making decision.
A. Future physical, economic, social or political changes that my affect present value of property.
Appraiser:
A. A person who calculates or estimates the value of something or an amount to be paid, chiefly for tax or insurance purposes.
B. An independent person trained to provide an unbiased estimate of value for a fee.
C. A person who is authorized to act on behalf of another.
D. As defined by Regulation Z, a party who arranges for or extends credits more than 25 times a year or more than 5 times a year if the transaction is secured by a dwelling.
B. An independent person trained to provide an unbiased estimate of value for a fee.
Change:
A. A sphere of activity regarded as being reserved for a particular person or group.
B. An appraisal theory that a value placed on a property is good for a snapshot in time because no physical or economic condition remains the same.
C. A financing instrument with terms that are transferable to another party.
D. An estimate or opinion of value bases on supportable evidence and approved methods.
B. An appraisal theory that a value places on a property is good for a snapshot in time because no physical or economic condition remains the same.
Comparable property:
A. A benchmark used in the market data approach to make a property value estimated based on other properties that have recently sold and are similar to the subject property in terms of location, physical features, price and date of sale.
B. The determination of a property’s value for determining property taxes.
C. The maximum value of a property that is realized when the other properties in the neighborhood are similar.
D. A classification of property ownership recognized in Wisconsin. A combination of both individual and marital property is treated as marital property.
A. A benchmark used in the market data approach to make a property value estimate based on the other properties that have recently sold and are similar to the subject property in terms of location, physical features, price and date of sale.
Conformity:
A. A difference of disagreement between two things, which means that both cannot be true.
B. A benchmark used in the market data approach to make a property value estimate based on other properties that have recently sold and are similar to the subject property in terms of location, physical features, price and date of sale.
C. The maximum value of a property that is realized when the other properties in the neighborhood are similar.
D. A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding.
C. The maximum value of a property that is realized when the other properties in the neighborhood are similar.
Subject property:
A. A reference to the real property under an appraisal.
B. A zoning district written and negotiated specifically for the subject property.
C. The flat portions of land located along watercourses and streams that are subject to overflow and flooding.
D. A prospective buyer of property who is legally capable and financially able to complete the transaction.
A. A reference to the real property under an appraisal.
Increasing returns:
A. The number of returns processed after Black Friday Sale.
B. Economic theory of pricing stating that demand increases price and that over-supply reduces price.
C. Valuable additions made to property that cost labor and capital and are intended to enhance the value of the property.
D. Improvements are made to the property, and the cost of those improvements are recovered upon sale due to the increased value of the property.
D. Increasing returns are demonstrated when improvements are made to the property, and the costs of those improvements are recovered upon sale due to the increased value of the property.
Regression:
A. The value of a lesser property decreases the value of a better property.
B. Economic theory of pricing starting that demand increases price and that over-supply reduces price.
C. A continuous and connected series of actions and events.
D. An easement that is required through the operation of law allowing a purchaser of land ingress and egress.
A. The value of a lesser property decreases the value of a better property.
