Chapter 9 Flashcards
the purpose of the appraisal process is
to allow the appraiser to make an appraisal in an efficient manor
value is defined as
the present worth of all future benefits
market value is
the highest price a property can bring in a competitive open market
he highest and best use of a property is determined by one that
produces the highest net yield over the longest period of time
capitalization is based on
the measure of net income during remaining life
homogeneity in a neighborhood
stabilizes values
the difference between reproduction cost and current value is
accrued depreciation
the before and after technique of determining value is used in
condemnation-( the process by which property of a private owner is taken for public use, without his consent, but upon the payment of just compensation)
remaining economic life of a residence may be described as
period of time house will contribute economic value to property
the three methods of estimating reproduction cost are
quantitative, unit-in-place, and comparative
the appraisal method used mostly for raw land is
development
highest and best use is determined by
legal permitted use
in the cost approach , land value is obtained by
market comparison
market data approach
cma (comparative market analysis)
the before and after technique of determining value is used in
condemnation
