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.
