LESSON 2 Flashcards

1
Q

Market value

A

most probable price as of a specified date for which property should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale

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2
Q

value to the owner

A

the personal opinion of a property value held by an individual owner; in appraisal this refers to floor and ceiling

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3
Q

market value conditions

A

value is price that might be reasonably expected , willing seller and willing buyer, adequate time and exposure to the market

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4
Q

floor price

A

minimum price at which a seller is willing to sell their property

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5
Q

ceiling price

A

the maximum price a purchaser is willing to pay for a property

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6
Q

justified investment price

A

a value that is justified for a single owner based on their specific investment needs and wants

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7
Q

fee simple or absolute ownership

A

closest to unlimited ownership of real estate in Canada

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8
Q

expropriation

A

government to take private property for public use upon payment of just compensation

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9
Q

chattel

A

personal property, not affixed to the real estate

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10
Q

fixture

A

part of the real estate

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11
Q

property analysis from broad to specific

A

broad- province, region and city
subject neighbourhood and immediate area
subject property land and site
subject improvements

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12
Q

market areas, neighbourhoods, and districts

A

change and transition
life cycle
growth
stability
decline
revitalization
evidence of transition

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13
Q

environmental influences

A

topography and physical features are crucial: local amenities, traffic patterns and nuisances

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14
Q

property taxes=

A

mill rate * AV / $1000

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15
Q

physical characteristics of land

A

site size, and shape, corner influence, pottage potential, excess land and surplus land, topography, soil analysis, utilities, site improvements, accessibility, environment

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16
Q

excess

A

land not required to support the current improvements

can be repurposed and have its own highest and best use

17
Q

topography

A

underlying soil conditions determine what can be built on a site

18
Q

environment

A

the direction of the site faces affect its value , Many prefer year yards facing south or west

19
Q

latent value

A

value possessed by a property that has potential for redevelopment because it is currently not employed at its highest and best use

20
Q

highest and best use

A

provides the max net return in the future, with consideration for all legal, physical, financial, and market constraints

21
Q

HBU

A

results in the highest land value

what is reasonable and probable

22
Q

HBU

A

Physically possible
financially feasible
legally permissible
maximally productive

23
Q

PEGS; factors affecting land values

A

physical, environmental, and locational

economic
government
social

24
Q

off site costs

A

municipal permits

25
three income focused methods
land residual, ground rent cap, subdivision or discounted cash flow
26
land valuation techniques
DCA Extraction allocation income land residual ground rent subdivision development
27
DCA
most common used and preferred method
28
lot measurement or area basis
price per front metre, price per square feet, price per lot
29
density of development basis
price per building unit price per buildable square metre/foot FAR, FSR
30
adjustments for size
acre = 1m , 100acre is not going to be 100m, adjustments are made for size, typically larger sites worth less
31
principle of diminishing marginal utility
price of smaller sf is greater than property with higher SF
32