Property Valuation & Appraisal Process Flashcards
Define Gross Rent Multiplier:
- number to calculate value of rental property
- multiplied by gross yearly rent to find property value
- specific number depends on property, location, and current economic conditions.
Define Sellers Market:
demand for property in ares is greater than the available supply.
Define Buyers Market:
supply of houses is greater than the demand.
Explain the term increment:
social and economic factors that push property values up in certain areas due to population growth and increasing wealth.
Define Blockbusting:
illegal real-estate practice of buying homes from white majority homeowners below market value, based on the implied threat of future devaluation during minority integration of previously segregated neighborhoods.
Define Curable Depreciation:
physical depreciation or functional obsolescence that can be required in order to offset the depreciation, also anything that can be reversed without completely replacing the property.
Define Salvage Value:
structure has depreciated as much as possible, end of its useful life.
Explain Accelerated Depreciation:
method whereby an asset loses book value at a faster rate than the traditional straight-line method. Generally, this method allows greater deductions in the earlier years of an asset and is used to minimize taxable income.
What are the three classifications of real estate appraisers?
licensed real estate appraiser, certified residential appraiser, and certified general appraiser.
How are each of the levels of real estate classification attained?
one level must be achieved before moving to the next classification.
What is the the difference between the levels of classification in real estate?
the kind of property the appraiser is permitted to evaluate.
