National Section - Chapter 2 Flashcards
Area of a rectangle
width x depth / length
Area of a triangle
base x height / 2
Area of a trapezoid
(L + L / 2) x H
1 Acre = ? SQFT
43,560
Width of the lot and the expanse of road exposure that a lot offers
front footage
Heated and cooled square footage of a structure that is measured using the outside dimensions
Gross Living Area
GLA excludes what areas?
garage, carports, decks, patios
Amount of space local zoning regulations require between the property line and any improvements
setbacks
Type of legal description that describes a parcel of land using a set of fractions and the corresponding section, township and range numbers
rectangular/ government survey
Square tract of land used in the rectangular survey method
section
1 section measurements
1 mile wide and 1 mile deep (contains 640 acres)
Volume
H (or D) x W x L
Tool agents use to determine listing amount on a home
Comparative Market Analysis
Appraisal method for single family or duplexes based on the gross monthly rent
Gross Rent Multiplier
Method of appraising income producing properties based on the annual gross income
gross income multiplier
Value method based on the principle of substitution
cost approach formula
Decrease in value due to physical deterioration, functional, or economic obsolescence
depreciation
Determines the rate of return considered to be a reasonable return on investments - given the risk
income capitalization approach
approach to calculating value which is the gross income less all operating expense
NOI
annual amount of money someone pays to borrow money
annual interest
Debt paid off over a period of time with periodic payments
amortized loan
Loan that pays down the interest owed, none of the principal
interest only loan
number expressed as a percentage or decimal that calculates a mortgage payment which would retire the loan in the expressed time allotted or term of the loan
loan constants
shows the relationship b between the amount borrowed and the appraised, market, or assessed value of the property
LTV ratio
Increase in value over time
appreciation
percentage relationship between the investment price and the returns on that investment
rate of return
value of real estate - any liens against the real property
equity
gross potential income - vacancy and collections and other income - all operating expenses
NOI
