Definitions

Question 1

Real Estate

Answer 1

The physical land,its natural attributes, and accessories, outbuildings, or other fixtures attached to the land that are fixed and immobile.

Question 2

Real Property

Answer 2

Refers to all interest, benefits, and rights inherent in the ownership of of physical real estate. These interests, benefits, and rights can call be separated without physically dividing the real estate.

Question 3

Market Value

Answer 3

The most probable price that a property should bring in a competitive open market transaction where both the buyer and seller are knowledgeable, acting in their own best interest, not under duress and using cash or a cash equivilent.

Question 4

Cost

Answer 4

Is an accomplished fact or a current estimate of actual construction or overall development cost. Used in relation to production not in exchange.

Question 5

Price

Answer 5

The amount a particular purchaser agrees to pay and a particular seller agrees to accept under the circumstances surrounding their transaction. Once finalized, refers to a sale or transaction price and implies an exchange. Price is a fact.

Question 6

Replacement Costs

Answer 6

The estimated cost to reconstruct a building with utility equivalent to the building being appraised, using modern materials, current standards, design, and layout at current prices as of the effective appraisal date.

Question 7

Reproduction Cost

Answer 7

The estimated cost to construct an exact duplicate or replica of the building be appraised, using the same materials, construction standards, design, layout and quality of workmanship & embodying all deficiencies, superadequacies, and absolescences of the subject building, at current prices as of the effective date of the appraisal.