Module 8 Vocab Flashcards
The value of a property according to the tax rolls in ad valorem taxation.
assessed value
Note: this often differs from market value due to it being based on a ratio or can include partial exemptions such as homestead or agricultural concessions.
1) The amount required to create, produce, or obtain a property. 2) the total dollar expenditure to develop an improvement.
cost
A purchaser’s wish for an item to satisfy human needs (eg. shelter, food) or individual wants beyond essential life-support needs. One of the 4 factors of value. (demand factor)
desire
The ability of an individual or group to participate in a market, i.e. to acquire goods and services with cash or its equivalent. One of the four factors of value. (demand factor)
effective purchasing power
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
fair value
The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate.
going concern
A type of value for insurance purposes based on the cost of physical items subject to laws. Generally based on building improvements, not the site or land.
insurable value
The value of a property to a particular investor or class of investors based on the investor’s specific requirements. (particular to the investor and not to the impersonal and detached market)
investment value
the amount asked, offered, or paid for a property; may or may not have any relation to the worth attributed to a particular property
price
The present or anticipated undersupply of an item relative to the demand for it. Conditions of ____ are one of the 4 factors of value. (Supply factor)
scarcity
The value a specific property has for a specific use. Doesn’t always coincide with the best way to utilize and exploit the property.
use value
The ability of a product to satisfy a human want, need, or desire. One of the 4 factors of value. (supply factor)
utility
1) an economic concept; the monetary relationship between properties and those who buy, sell, or use those properties.
2) the present worth of future benefits that accrue to real property ownership
value
The value of a property assuming a specific use, which may or may not be the property’s highest and best use on the effective date of the appraisal. Value in use may or may not be equal to market value but is different conceptually.
value in use
Note: this is a related subset of use value but it adds a specific person or firm to the description
The following are examples of a ____ property:
- religious facility
- museum, library, school
- hospital, post office
special-use property
