Plant Appraisal Flashcards
Correctness or absence of error or bias
Accuracy
Act or process of developing an opinion of value cost or some other specified assignment result
Appraisal
Systematic steps that an appraiser takes to solve an appraisal problem
Appraisal process
Appraisers opinions and conclusions developed for a specific assignment
Assignment result
Attributes that benefit or provide utility to someone or something
Benefits
Percentage rate derived by dividing a properties net operating income by its sale price a rate divided into the subject property’s net operating income for purposes of estimating market value
Capitalization rate
Damage destruction or loss of property resulting from an identifiable event, that is sudden unexpected or unusual
Casualty loss
Instrument used for measuring the height of a tree or other structure
Clinometer
A plant appraisal, the amount awarded by a court to settle a legal claim
Compensation
Amount by which the addition of an item increases the value of the whole or the amount by which the value of the whole decreases in the absence of that item
Contributory value
Amount of money required to create produce or obtain a property or service
Cost
Cost approach technique in which the cost of a smaller plant is extrapolated to a larger plant based on the cost of money and time to achieve parity; also known as cost forwarding
Cost compounding technique CCT
Upper part of a tree consisting of the branches and foliage it’s length is measured from the lowest branch to the top of the tree
Crown
Cost to replace an item with an exact replica, less depreciation
Depreciated reproduction cost
Loss in value from any cause typically caused by either physical, deterioration, functional limitations or external factors
Depreciation
Tree diameter measured at 4.5 feet above the soil line in the United States and some other countries
Diameter at breast height DBH
Extent to which the fair market value of a property has declined as a direct result of a casualty event
Diminution in market value
Income based evaluation in which the appraiser develops a stabilized net operating income for an asset and an appropriate capitalization rate the estimated value equals net operating income divided by the capitalization rate
Direct capitalization
An income based valuation in which the appraiser uses an evaluation of the actual or estimated periodic net income produced by the revenues and expenses in the operation and ultimate resale of an income producing property
Discounted cash flow analysis
Legal non-possessory interest in real property that conveys use or partial use, but not ownership of all or more typically a portion of an owner’s property
Easement
Value that ecosystem services produced by plants and other natural resources such as habitat, clean air, water, and wildlife contribute to society typically a non-market value
Ecosystem value
Body of moral principles or values governing a group or individuals conduct
Ethics
Factors outside the property and outside the control of the tree owner that affect life expectancy, structure, health or form
External limitations
Formulaic method of inferring from the total or unit cost of a small tree what the theoretic installed cost or value of a larger tree might be
Extrapolation
Synonymous with market value
Fair market value
Factors associated with the property or the tree itself that limit future plant development
Functional limitations
Cost of substitute item that provides equivalent, utility benefits or function rather than the cost to produce an exact replica
Functional replacement cost
Fax or data that are understood or assumed to be true such as a homeowner telling an appraiser the location of their property property boundaries
General assumptions
A tree specimen considered significant because of its size form shape, beauty, age, color, rarity, genetic constitution, historic origin, or some other distinctive feature
Heritage tree
Reasonably probable and legal use of a property that is physically possible and financially feasible, and results in the highest value, the cornerstone of market value estimation
Highest and best use (HBU)
Condition stipulated by the appraiser that is contrary to what is known to be true. example - the condition of a damaged plant before the damage occurred or new zoning
Hypothetical condition
Constraints imposed upon appraisals, often associated with items, such as the scope of work, the availability of data access, and use of the report
Limiting conditions
Venue or economic structure within which goods and services are exchanged for money
Market
Most probable price as of a specified date in cash, or in real terms equivalent to cash, or in other precisely revealed terms for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale with the buyer and seller, each acting prudently, knowledgeably, and for self interest and assuming that neither is under undue duress
Market value
Standing timber large enough to be sold to a mill
Merchantable timber
Explicit form of depreciation in which the value of an object is reduced directly by the cost to repair that item
Monetary reduction
Process for estimating the value of resources that are not commonly bought and sold in the marketplace
Non-market valuation
General term for any value that is not based on the concept of exchange or rooted in actual transactions between buyers and sellers or cannot be obtained from a market price
Non-market value
State of being equivalent in size or quality or producing equivalent benefits
Parity
Situation in which a damaged plant or landscape item cannot be fully restored to its pre-damaged condition, but is otherwise expected to produce future benefits
Partial loss
Tangible property that is not permanently fixed to the real estate, such as nursery stock prior to planting lumber, equipment, furniture, and money also refers to intangible property
Personal property
Loss and value caused by wear and tear or other physical deterioration maybe curable or incurable
Physical deterioration
Act or process of formulating an opinion of a defined value or a defined cost may apply to plants, landscape elements or services
Plant appraisal
Information collected for the plants on a site
Plant inventory
Measure of exactness, how fine or precise a quantity measurement or estimate is a number can be precise without being accurate
Precision
Amount of money asked offered or paid for property or services
Price
Principal asserting that value is created by the expectation of future benefits
Principle of anticipation
Principle asserting that property value is created when contrasting opposing or interacting components are in a state of equilibrium
Principle of balance
Principle asserting that property value is created and sustained with the property characteristics that conform to the demands of its market as expressed in economic pressures and shared preferences for certain types of structure, amenities and services
Principle of conformity
Principal asserting that land should not be valued based on one use while improvements on the land are valued based on another use
Principle of consistent use
Principal asserting that value of a particular component of a property is measured in terms of its contribution to the value of the whole property or the amount by which it’s absence would detract from the value of the whole
Principle of contribution
Principal asserting that when several similar commodities goods or services are available, the one with the lowest price will attract the greatest demand and widest distribution value of a replacement property is dictated by the value of an equally desirable sub substitute property
Principle of substitution
Term used in appraisal to refer to real estate, real property or personal property. Property implant appraisal property often refers to the real estate of which the item being appraised is a part.
Property
General term for values that are recognized by or a crew to the general public public interest value is often associated with property held or sought by a government agency and is derived from intangible, ecosystems and recreation values that private markets may not recognize
Public interest value
Amount determined by a court or other entity and levied against the defendant as punishment for wrongful acts and to discourage similar behavior
Punitive damages
Data that are descriptive relating to qualities such as plant health site conditions, and management history
Qualitative data
Data that are readily measured or have natural order or ranking
Quantitative data
Physical land and appurtenances attached to the land, including the land things that are naturally part of the land and things that are attached to the land by people native or installed trees and landscaping are real estate
Real estate
Act of estimating the cost or value of real estate
Real estate appraisal
All the interests, benefits and rights accruing to the owner of real estate otherwise described as the bundle of rights. simply put the legal interest in real estate
Real property
Part of the overall appraisal process that involves review of the data and the resolution of disparate indications of value or cost into a meaningful defensible conclusion
Reconciliation
Mathematical method for quantifying, whether there is a statistically significant relationship between one and more independent variables, and a particular dependent variable maybe used to predict diameter breast height from stump diameter, or to define how property value is affected by the presence of trees
Regression analysis
The cost to replace the landscape item with an item or items having equivalent utility it may, or may not include depreciation from benefits, function, or utility previously referred to as “cost of cure“
Replacement cost
Cost to produce an exact or nearly exact replica of a land landscape item
Reproduction cost
Market in which small quantities of goods and services are exchanged for money
Retail
Full price that a consumer or end user should expect to pay
Retail price
Legal rights to passage or conveyance from one point to another across one or more parcels of land
Right of way ROW
- Established or widely recognized authority of acceptable performance. 2. Document established by consensus or government agency that provides rules, guidelines or characteristics for activities or results.
Standard
Value specified in a statute or law
Statutory value
Value of standing timber to be sold into local timber markets generally applied to volume considered a type of market value
Stumpage value
Excess in the capacity or quality of a structure or structural component that does not add value or functional utility to an object or property
Superadequacy
Cost extrapolation technique based on extrapolating the cost of nursery grown tree up to the size of the subject tree being appraised
Trunk formula technique
Usefulness or benefits, provided by an item giving rise to demand for it
Utility
Actor process of developing an opinion of value interchangeable with appraisal
Valuation
Monetary worth of a property, good, or service to buyers and sellers at a given point in time expectation of present worth of future benefits, economic value is created by scarcity, restricting supply and utility enhancing demand
Value
Market in which a discounted price is generally paid for goods and services
Wholesale market
Idea that an items value can be demonstrated empirically and inferentially by how much someone is willing to pay to obtain preserve or protect. It can be applied to both market and lawn market evaluation.
Willingness to pay
Substitute item that provides equivalent, utility, benefits, or function rather than the cost to produce an exact replica
Functional replacement
