Part 11 Flashcards
__________ is the perception that value is created by the expectation of benefits to be derived in the future
Anticipation
11-167
Market ______________ is the theoretical balance where demand and supply for a property, good or service are equal
Equilibrium
11-170
The principle of _______________ is the interaction of supply and demand
Competition
11-172
Having healthy ______________ helps keep excessive profits and prices in check
Competition
11-172
The principle of _____________ states that when several similar items or services are available, the one with the lowest price will have the greatest demand
Substitution
11-173
The principle of __________ is the principle that real property value is sustained when contrasting or interacting elements are in the state of equilibrium
Balance
11-174
____________ and ______________ returns states that beyond a certain point, each additional unit will add less income or value than the unit before
Increasing and decreasing
11-174
T/F real estate is immobile
True
11-176
The 4 tests of Highest and Best Use are:
1 _________ permissibility
2 _________ possibility
3 _________ feasibility
4 _________ productivity
1 Legal
2 Physical
3 Financial
4 Maximum
11-176
In HABU the first two steps _________ permissibility and __________ possibility must be looked at first and narrow down our choices the quickest
Legal
Physical
11-176
___________ use is the concept under HABU that land cannot be valued on the basis of one use while the improvements are valued on the basis of another use
Consistent
11-177
__________ land is land that is not needed to serve or support the existing use. It could have its own HABU
__________ land is land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Doesn’t have its own HABU
Excess
Surplus
11-178
