National Lesson 3

Question 1

The highest price a ready, willing and able buyer, will pay to a ready, willing and able seller, allowing a reasonable time for exposure in the open market is called___________.

Answer 1

market value

Question 2

________ is the value assigned to a piece of property for tax purposes.

Answer 2

assessed value

Question 3

_________ implies that value can increase or decrease in anticipation of some future benefit or detriment that will affect the property.

Answer 3

anticipation

Question 4

__________ is the concept which states that combining two or more adjacent parcels of land will result in an increase in value.

Answer 4

plottage

Question 5

The cost of constructing an exact duplicate of the property at today’s prices is called ___________.

Answer 5

reproduction cost

Question 6

The time the improvements contribute value to the property is called the ____________________ of the property.

Answer 6

economic life

Question 7

The loss of value brought about by physical deterioration or functional or economic obsolescence is called ___________.

Answer 7

depreciation

Question 8

________ is the loss of value attributed to outdated equipment, eccentric design, and /or social change.

Answer 8

functional obsolescence

Question 9

If the cost to correct depreciation contributes more value than the actual cost to cure, then that depreciation is classified as ___________.

Answer 9

curable

Question 10

The act of converting future income into current equivalent value is called _________.

Answer 10

capitalization