Module 8 Flashcards

1
Q

_______ costs are largely comprised of labor and materials, but other costs such as equipment, site security, and fencing are included.

A

Direct (hard) cost

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2
Q

_____ Costs are expenses such as the professional services of architects and surveyors, costs for building permits, and costs for insurance.

A

Soft

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3
Q

_______ is a market-derived figure that represents the amount an entrepreneur expects to receive as his or her contribution.

A

Entrepreneurial Inventive

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4
Q

______ is identified with the overall project and includes the construction costs, plus acquisition costs and all the other expenditures required to bring a property into an operating state.

A

Development cost

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5
Q

Cost and price are facts. _________ is not.

A

Value

It is an opinion of the present worth of the future benefits that accrue to real property ownership.

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6
Q

What are the 4 independent factors that create value?

A
1.  Utility
  (ability to satisfy a human want, need, desire)
2.  Scarcity
3.  Desire
4.  Effective Purchasing Power
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7
Q

The value a specific property has for a specific use.

A

Use Value

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8
Q

Use Value is often divided into what two categories of property types?

A

Limited-market properties

Special-use properties

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9
Q

Limited-market property examples include:

A

Large manufacturing plant

Research and development property

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10
Q

Special-use property examples include:

A

Religious Facility
Museum, library, school
Hospital, post office

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11
Q

Investment value is NOT market value for an investment property. Instead, it is

A

the value of an investment property to a particular investor based on their investment requirements.

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12
Q

The market value of all the tangible and intangible assets of an established and operating business with an indefinite life.

A

Going Concern

“market value of Going Concern”

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13
Q

A type of value for insurance purposes____-

A

Insured Value

Appraisers that perform assignments for insurable value are typically analyzing the depreciated cost of the improvements for insurance purposes.

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14
Q

The value of a property according to the tax rolls in ad valorem taxation.

A

Assessed Value

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