Lesson 3 Flashcards
What is market dissagregation?
Market dissagregation differentiates the subject property and property of similair attributes or characteristics.
What is market segmentation ?
Market segmentaion identifies the most probable users of proprty by the consumer characteristics.
What is market delineation.
Market delineation is the market segment identified to be most likely interested in the subject real estate and services it provides.
What is market analysis?
Markey analysis combines market segmentation and product dissaggregation.
Define geographical boundries like neighborhood district and market
- Boundries are geographic or demographic, street patterns shopping area and transportation routes
- start with subject property and walk outwards and walk bike drive the area noting defining charachterstics
- use published maps from real estate board
- neighborhood of complimentary residendial, commercial and communty land uses.
- district has one predominant land use
- market area can encompass one or more neighborhood or districts where people live or work
How are trends in real estate can be measured?
Measured by interaction of several market statistics such as gdp, vancancy rental growth rates, capitalization rates , home prices changes, changes in supply
What is change and teansition in market areas?
- What is the trend in the area?
- is there any rezoning in area and what is overall community plan(ocp)
- transition is the result of change . Change and transition occur at different times. Transition from one use to another that affects positive or negative effects of value.
What is the life cycle of a market area?
1-growth
2- stability
3-decline
4- revitalization
Transitionusually occurs in the revitalization when one land use is no longer feasible and discontinued for a more favourable use.
Give example of evidence of transition?
The introduction of offices into a single unit residential neighborhood. Changes in one market usually affect neighboring , competing areas.
What is gentrification?
Is the process of renovation or rehabilitation and reversal of decay in a blighted neighborhood. Wealthy or middle class moving into area with cheaper property values and renovating to increase long term investment.
What is consequence of displacment?
Is when previous residents given increased rent, taxes property values. Displacement also occurs when government exproriates land required for large scale public improvement projects
Analyzing values influences -social
The demographics of an area include population, density, skill levels, age levels, household sizes, employment status, qulaity of education, medical, commercial recreational and culturual factors.
Analyzing value influences - economic
The income levels, income distribution amoungst households, property ownership, rental trends, and vacancy rates, new development and re development.
Analyzing value influences - govermental
These refer to the tax laws, zoning, building code, fire and health regulations, quality of public services, environmental regulations for all levels of goverment.
Analysing value influences - environmental
These include any natural or man made changes that affect market, such as building size, density, and maintenance, topographical, open spaces, nuiances and hazards from nearby developments.
- odor, pollution noise, smog litter, street widths and traffic patters and access to public transportation.
Characteristics of real estate districts require the availabilty of piblic utility provided is reflected in property value. Discuss single family residential districts?
Home owner assocoaitions of attempt to 1-maintan 2- improve property values and can have great impact on thwarting developments.
Like limiting traffic patterns, lobby for maintaining of good public services, improving community facilities like schools rec centres hosptals, and shopping areas,
Characterisitcs of real estate districts- discuss multi family residential districts?
These districts have their own requirements and include access to the work place , transportation, shopping facilities, reputation of are, proximty to open spaces,parking for owners and guests, vancancy and turn over rates.
Define a few Other types of districts?
Office, retail, commercial/industrial and agricultural
Name a few specialty districts?
Forestry, medical, research and development parks, high tech parks, education districts and historic sites.
- learn from local newspapers and magazines, become involved in real estate organizations, networking is valuable
- 1/2 job of appraiser is to know where to look for data then other half is to analyze it to produce a reliable report for the client.
What are building standards and what do they regulate.
Building codes or building standards govern health and safety of building construction.
A building code may regulate:
Structural instability
Fire resistance
Emergency egress
Adequecy of space air and light
Some areas they govern are style and design like architecture or heritage conservation
Why is site analysis important?
Its necessary to determine the highest and best use of the site if vacant. In order to find use, the appraiser must understand physical governmental and locational characteristics which affect the utility and desireability and marketability of the property
What is plottage?
Plottage is a value incriment resulting in the assembly of 2 or more smaller sites. The result is the combined utility is greater than the sum of the individual utilities. 2 plots at 450.00 per front meter but as one combined lot there is greater versatility so the value is increaes to 600.00 per front meter.
What is Assemlblage?
Assemblage is the merging of adjacent properties into one common ownership withiut necessarily increasing utility. So the combined lots would still be 450.00 per front meter.
Define surplus land?
Surplus land results from a site being larher than standard and where additional size does not provide proportional utility.
Why is an environmental assesment usually required when industrial land is redeveloped?
An environmental asssesment of land determines the presence of possible contaminants on the property.if land has been seriously contaminated by previous owners, site must be cleaned up before being redeveloped and the cost of clean up can be very costly thus reducing value of land? Legislation would likely force owner to clean up land.
Where can you find a copy of legal description?
On notice of assesment or if you have the mailing address the municipality can advice on legal description.
- take legal description to land title office to review procedures manual and deed or title to property for liens mortgages or restictions against the house.
What is metes and bounds system?
Land is identified by a series of measurements outling the boundaries of the property. Method involves a point of beginning(POB) reference points are made with compass bearings describe the direction of boundaries and close boundary by returning to the (pob). S 45 w, n 10 e, n 85 w , s 50 e
What is rectangular sysytem?
Known as the governments survey or section and township sysytem. Reference points start on 49th paralell of latitude
- east and west are lines are called base lines
-north and south lines are called principal meridians
Each set of lines is a unique number so properties can be accuratelu located.
What is lot and block system?
This is an outgrowth of the retangular system and can be used to simplify the location description on small parcels
- aka recorded plat survey system or the recorded map survey system
- a registered plan number of the defined area or subdivision
How are boundaries determined?
1-metes and bounds
2-retangular survey system
3-lot and block system
What is a legal description of land?
A parcel of land identified by a common description
-a unique legal description that sets out boundaries and is required in a central office.
What are off site improvements?
It includes water, drainage, sewers, utlities, and access to roads
What is on site improvements?
Includes landscaping, site grading, driveways, drainage improvements, accessory buildings, and support facilities.
What is site description?
Site description includes factual data, land use restrictions, legal descriptions, title and record data, and description of its physical characterstics
What is site analysis?
It involves the study those neighborhood factors that create enhance, detract from utility or marketability.
What is corner influence ?
Most advantageous for commercial and industrial use and so for residential but this will be indicated by market evidence.
Why is title and record data important tot the appraiser?1
Details of ownership of a property because it determines the interest that has to be valued.
- copy of title will indicate any easements and restrictions which may limit use of property
- found at land title office
- searched on internet for a small fee
Who is responsible for assesments and tax information?
Assesments are carried out under provincial legislation
Tax rates are set by cities and municipalities
Are assesed values good indicatore of market value?
May not be good indicators of market value because statistical methodology techniques are used in mass appraisals
-tax levels can affect property values if they are excessive.
