Part 13 Vocab Flashcards
a method of estimating land value in which sales of improved properties are analyzed to establish a typical ratio of land value to total property value and this ratio is applied to the property being appraised or the comp sale being analyzed
allocation
the effect on value produced by a property’s location at or near the intersection of two streets; the increment of value or loss in value resulting from this location or proximity.
corner influence
the characteristics or attributes of properties and transactions that cause the prices of real property to vary
elements of comparison
a method of estimating land (or site) value in which the depreciated cost of the improvements on an improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land (or site).
extraction
the increment of value that often occurs when two or more sites are combined to produce greater utility. The process that creates ____ is called _____.
1)plottage 2) assemblage (process)
The approach called _____ where the appraiser selects sales of similar parcels. The sales are analyzed, compared, adjusted, and reconciled into an indicated value for the subject property. The most common procedure used to value land or site and the preferred method when adequate data is available.
sales comparison
the components into which a property may be divided for the purpose of comparison. These ___ usually facilitate analysis even when the properties are not very comparable.
units of comparison
ex: price per square foot, front foot, cubic foot, room, bed, seat, apartment unit.
The six procedures for analyzing and deriving a land value opinion:
1) sales comparison
2) extraction
3) allocation
4) land residual
5) ground rent capitalization
6) subdivision development analysis
Reasons appraisers need to value land separately in appraisal assignments:
1) Vacant land or site appraisal
2) Highest and Best Use as though Vacant
3) Cost Approach: the first step
4) Income Approach: some techniques (especially residual) require an estimate of the land or site value
5) Property Taxation: separate value for land and improvements
6) Insurance: fire insurance is typically written on the improvements, not the land
7) condemnation: when a portion of the property is condemned in eminent domain proceedings, it is often necessary to identify separate values for the area acquired by the condemning authority and the remaining land or site area.
