Lesson 4: Evaluating and Pricing Property Flashcards
Value in Use
Value in Use
The value of a property to its owner or to a user. Also called utility value.
Value in Exchange
Value in Exchange
(Market Value)
The value of a property to a buyer on the open market. Also called exchange value.
uniform standards of professional appraisal
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
Integration
Integration is the initial stage, when the neighborhood is being developed.
Equilibrium
Equilibrium is a period of stability. The neighborhood is changing very little.
disintegration
The equilibrium phase is generally followed by disintegration or decline, when the economic usefulness of the properties in the neighborhood is almost over.
Rejuvenation
Rejuvenation, also called revitalization or rebirth, is a stage of renewal. Structures in the neighborhood are rebuilt, and sometimes the properties are put to new uses.