Sample Questions Flashcards
1
Q
In 1987 8 Appraisal Organizations formed?
A
The Appraisal Foundation
2
Q
T/F The appraisal board of trustees acts as the executive board for the TAF?
A
True
3
Q
In the 1970s who developed uniform rules for mortgage underwriting?
A
Fannie Mae and Freddie Mac
4
Q
Who retains final authority over revisions to USPAP?
A
ASB - Appraisal Standards Board
5
Q
Who is responsible for revising USPAP
A
ASB
6
Q
Which foundation Advisory Council is made up of non-profit organizations?
A
TAFAC - The Appraisal Foundation Advisory Council
7
Q
T/F Valuation advisories issued by the TAF are binding?
A
False
8
Q
When did mortgage interest peak?
A
1980s
9
Q
Who exercises all authority and power over: subject, style and substance of USPAP?
A
ASB
10
Q
Who has authority to amend USPAP?
A
ASB
11
Q
What entity is responsible for appointing members to the ASB and AQB?
A
BOT
12
Q
When were the first organized appraisal groups formed?
A
1930s
13
Q
What is the largest professional appraisal society?
A
Appraisal Institute
14
Q
When did the first universally accepted appraisal report appear?
A
1970s
15
Q
Does the Equal Credit Opportunity Act (ECOA) apply to vacant land?
A
No
16
Q
Is the TAF a for profit organization?
A
No
17
Q
When did the secondary mortgage industry come into prominence?
A
1970s
18
Q
T/F The fact that an appraiser has previously appraised a property is typically not considered confidential informations under USPAP?
A
True
19
Q
T/F If not required to comply with USPAP by law, regulation of agreement, an appraiser may voluntarily choose to comply with USPAP?
A
True
20
Q
Is it unethical for an appraiser to offer a reduced fee on an appraisal if the clients loan does not close?
A
Yes
21
Q
Can an appraiser only appraise one structure on a property with two structures on it?
A
No an appraiser must appraise what improvements are currently located on the property
22
Q
Can an appraisers compensation be dependent on reporting a predetermined value
A
No
23
Q
Can an appraiser base their rates on Gross Leasable Area?
A
Yes
24
Q
T/F an appraiser may base an appraisal fee on the value of the property?
A
False
25
GIS is mapped in?
Layers
26
T/F Is UAD (Uniform Appraisal Dateset) required for all governmental appraisals?
True
27
What percent of emails are SPAM?
81%
28
A program that reclaims data is?
Norton Ghost
29
What is it called when an owner transfers rights to develop 10 units to another owner?
Transferable Development Rights
30
An appraisal is described as a (blank) of value?
Opinion
31
Modern definitions of appraisal replace (blank) with (blank)?
Estimate with Opinion
32
"the interests, benefits and right inherent in the ownership of real estate
Real Property
33
T/F Escheat is considered a public restriction on real property ownership?
True
34
When people buy and sell land and buildings in the marketplace they are selling real property rights?
True
35
T/F CC&Rs are a public restriction on Real Property
False - Private
36
A list of expressed assurances and limitations on land use, often found in contracts between land Sub-dividers and lost purchaser is ?
CC&Rs
37
The interests, benefits, and rights inherent in the ownership of Real Estate is the definition of ?
Real Property
38
A development right that cannot be used by the landowner, or that the owner chooses not to use, but can be sold to landowner's in another location?
Transferable Development Rights
39
Is mobility a characteristic of land?
No
40
Is an appraisal an Opinion or Estimate of Price?
Opinion
41
the earth's surface, both land and water, and anything that is attached to it whether by the course of nature or human hands is what?
Land
42
Air Rights are considered what kind of rights?
Vertical Rights
43
T/F Is taxation considered part of police powers?
False, but Zoning, Building Codes, subdivision regulations, electrical codes, plumbing codes and energy codes
44
Is an area rub personal property?
Yes
45
The process of eminent domain is administered through what action?
Condemnation
46
The rectangular survey system is also known as?
Government Survey System
47
Which System of legal description is based on standardized measurement and consistent rectangles and squares?
Rectangular Survey
48
What is the fullest and most complete estate?
Fee Simple
49
Does an easement appurtenant have a dominant or subservient tenant?
Both
50
What is the most desirable form of time sharing called?
Fee Timeshare
51
Is Fee Simple a partial estate?
No
52
Trespassing on the domain of another is called?
Encroachment
53
What kind of estate is a remainderman found?
Life Interest Estate
54
Are syndication ownership groups private of public?
Both
55
Are fee simple estates only for married Couples?
No, Tenancy by the entirety is
56
What is the most complete form of ownership?
Fee Simple Estate
57
What is the best kind of deed for the buyer?
Warranty Deeds
58
T/F Does a deed need to be recorded to be valid?
False
59
Grantee is the?
Buyer
60
Grantor is the?
Seller
61
Is the statute of limitations for oral contracts longer or shorter than written ones?
Shorter
62
What is a trust deed?
When the title to a property is vested in a trustee until the mortgage lien is paid off?
63
What does a State's statute of fraud do?
It requires certain documents be in writing
64
Contracts are WHAT that the law will enforce?
Promises
65
Is a contract with a minor valid?
It is if the minor still agrees to it after turning 18
66
What is binding and enforceable for all parties involved?
A Contract
67
What is it called when parties to a contract agree to substitute a new contract for the old one?
Novation
68
A breach of contract is also know as?
Default
69
T/F Punitive damages are not commonly awarded in breach of contract cases
True
70
the right of a party to contract to demand the defendant be ordered in the judgement to perform the contract is called?
Specific Performance
71
A deed that conveys to the grantee title to the property free and clear of all encumbrances, expect those specifically set forth in the document is a?
Warranty Deed
72
A writ issued by a court ordering someone to do something or prohibiting some act after a court hearing is called?
Injunction
73
T/F Every city has a statute of frauds?
False, every STATE
74
T/F a contract is a unilateral agreement?
False, Bilateral Agreement
75
Feebleness on one side, overpowering strength on the other is called?
Duress
76
A lease in which the landlord receives stipulated rent and is obligated to pay all of the property’s operating fixed expenses is?
Gross Lease
77
The correction or change of an existing document by court order upon petition of one of the parties to the document is ?
Reformation
78
A deed that conveys real property from a seller to a buyer but does not guarantee clear title; used by court officials and fiduciaries to convey property they hold by force of law, but to which they do not hold title is?
Bargain and Sale Deed
79
A manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by the offer is the definition of
An Offer
80
Damages awarded in a lawsuit as punishment is an example to others for malicious, evil or fraudulent act is what kind of damage?
Punitive
81
A written, legal instrument that conveys an estate or interest in real property when it is executed and delivered is a?
Deed
82
What rules states that written contracts take precedence over oral ones?
Parol Evidence Rule
83
A cancellation of a contract through mutual agreement of both parties is called?
Recission
84
A re-conveyance maybe employed if there is a ?
If a deed of trust is recorded and then the loan is paid off, the reconveyance document passes title back to the borrower
85
T/F according to supply and demand, the price of a commodity varies inversely with supply?
True
86
A set of arrangement in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them is a ?
Market
87
Which type of market is most likely to be characterized by higher prices and shortage of homes for sale?
Seller's Market
88
What is one of the most inefficient market types?
Real Property Market
89
Is Real Estate sensitive to nearby influences?
Yes
90
In the real property market Demand is?
Dynamic and Subject to immediate change
91
Is most real property paid for in cash?
No, most get mortgages
92
The area associated with a subject property that contains its direct competition is the ?
Market Area
93
In a real property, a market is defined in terms of
Competition
94
T/F Availability of Mortgages a long-term trend?
False
95
How is real property unique as an economic good?
it is immovable
96
A group of complementary land uses; a congruous grouping of inhabitants, buildings or business enterprises is a ?
Neighborhood
97
A neighborhood characterized by homogeneous land use; apartment, commercial, industrial or agricultural is a ?
District
98
When supply and demand are out of balance it tends to move towards?
Equilibrium
99
An active market in which sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period is a ?
Seller's Market
100
A neighborhood consists of WHAT land uses, while a district consists of What land uses?
COMPLEMENTARY, HOMOGENEOUS
101
T/F the burden of managing the investment is one of the reasons why real property investor typically demand higher yields?
True
102
The “price” of money is expressed as ?
Interest Rate
103
Board Members of the FED are pointed by whom?
The President, and approved by the Senate
104
What year was the FED founded?
1913
105
T/F A 5 year balloon mortgage is not a short-term money instrument?
False
106
The FEDs efforts to influence the level of economic activity by regulating the availability of money and the rate of interest?
Monetary Policy
107
A contract that involves the purchaser making payments to the seller until the total purchase price is paid and then the seller delivers the deed is?
Contract of Deed
108
Who are the primary operators in the secondary mortgage market?
Fannie Mae, Freddie Mac and Ginnie Mae
109
Up until the 1970s mortgage lending was done at the WHAT level?
Local
110
FHA mortgages are funded by?
Mortgage Insurance premiums paid by borrowers
111
Mortgages that are neither insured nor guaranteed by an agency of the gov't, although they maybe privately insured are called what?
Conventional Mortgages
112
A pledge described property interest as collateral or security for the repayment of a loan under certain terms and conditions is a
Mortgage
113
in 1968 FNMA was split into two organizations called?
Fannie Mae and Ginnie Mae
114
What was the name of the clause in a mortgage that requires the mortgage be paid off in full when the property is sold ?
Due on Sale Clause
115
What are secondary liens called?
Junior Liens
116
A grossly over-improved house in neighborhood where no one can afford it is called a lack of ?
Effective Purchasing Power
117
T/F Building codes have an affect on values?
True
118
The cost of construction is based on?
Land, Materials and Labor
119
What is the optimal US unemployment rate?
3-4%
120
The value of an income property is based primarily on ?
the net income it can produce
121
What Gov't agency is responsible for monitoring coastal habitats?
NOAA
122
Each job in a BASIC industry supports how many service workers?
2-3
123
Utility
is the ability of a product to satisfy a human want, need or desire
124
Is transportation and economic force?
No, it is a External Governmental Force
125
Value is created by?
External Market Forces
126
Is Police Protection a Social Force?
No, Governmental Force
127
Total Construction costs are a combination of?
Land, Materials and Labor
128
The present or anticipated under supply of an item relative to demand for it is ?
Scarcity
129
Farmsteads are?
Not a form of community living
130
Are Zoning and Building Codes an environmental influence?
No
131
How many people live in the average American home?
1-2
132
T/F cost and Value are the same?
False
133
The amount asked, offered, or paid for a property it its?
Price
134
It would take $275,000 to produce a single-family home on the owner’s lot. $275,000 represents the ?
Cost
135
Exposure time is a WHAT opinion developed by the appraiser?
RETROSPECTIVE
136
A property owner has a long-term lease for $12 per sq. ft. while the market value is $8 per sq. ft. this is what kind of value?
Intangible
137
The value of a property according to the tax rolls in ad valorem taxation is the
Assessed Value
138
The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal is
Exposure Time
139
The market value definition says that a WHAT time is allowed for exposure in the open market
REASONABLE
140
Cost is related to what?
Production
141
Reasonable exposure time can be estimated by what actions?
interviews with market participants, info gathered through sales verification, and statistical info about days on market
142
What type of property types would Not typically be appraised based for the market value of going concern
A SINGLE FAMILY HOUSE
143
Do appraisals for insurance clams include land?
No
144
What is the principle that has it strongest application to income producing properties
ANTICIPATION
145
When purchasing a home as owner-occupant, the purchase’s anticipated benefits are
Amenities
146
A $60K garage is built, appraiser research finds the garage only adds $30K in value, this falls under WHAT principle
CONTRIBUTION
147
The net income that is leftover after the four agents of production are paid is returned to what?
The Land
148
Each of the 4 agents of production require a return to make it work
True, Land, Labor, Capital and Entrepreneurial effort
149
When a 8000 sq ft house in in a neighborhood of 1000 sq ft houses the value is diminished by ?
REGRESSION
150
T/F when developing an opinion of site value of an improved property, an appraiser needs to consider the highest and best use of the property as though it was vacant?
True
151
In appraisal the concept that the value of an inferior property is enhanced by its association with better properties of the same type is ?
Progression
152
A recession caused by a factory closing illustrates the principle of what?
Change
153
The principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium is called?
Balance
154
The principle of WHAT is the basic principle that underlies all three of the appraisal approaches?
Substitution
155
Which principle has the strongest application in the valuation of income producing properties ?
ANTICIPATION
156
When estimating the value of a swimming pool to a residential property, the most important principle is the principle of ?
CONTRIBUTION
157
The concept that successive increments of one or more agents of production added to fixed amounts of the other agents will enhance income, in dollars, benefits or amenities, at an increasing rate until a maximum return is reached. Then income will decrease until the increment value becomes increasingly less than the value of the added agents is
INCREASING AND DECREASING RETURNS
158
The 4 Criteria for highest and best use are :
Legally permissible, physically possible, financially feasible and maximally productive
159
The perception that value is created by the expectation of benefits to be derived in the future is ?
ANTICIPATION
160
Good things or bad things can happen to the value of your property according to what is located around it is ?
Externalities
161
What process would an appraiser use to identify sub-markets within a larger market ?
MARKET SEGMENTATION
162
A subject property’s market area would be defined as
“THE AREA FROM WHERE DEMAND COMES AND THAT CONTAINS ITS COMPETITION”
163
Which field of study focuses on the economics of individual firms, industries, or consumer segments?
MICROECONOMICS
164
183. The study of the economics of individual spheres of activity or patterns in a specific city if ?
MICROECONOMICS
165
The process by which sub-markets within a larger market are identified and analyzed is?
MARKET SEGMENTATION
166
T/F In commercial properties CONSTRUCTION COSTS is not a factor in demand analysis?
True
167
“an analysis of the market conditions of supply, demand, and pricing or the demographics of demand for a specific property type in a specific area is ?
MARKET STUDY
168
A market analysis examines the supply and demand for A WHAT of property, while a marketability analysis examines a WHAT property
TYPE, SPECIFIC
169
“the differentiation of a subject property from other properties on the basis of sub-classification with differing product characteristics is
DISAGGREGATION
170
T/F INCOME AND WAGE LEVELS are not considered in supply analysis for a residential property?
false
171
Identifying the most probable user for a particular type of property is a component of ?
Demand
172
The study of the supply and demand in a specific area for a specific type of property is ?
MARKET ANALYSIS
173
The objective analysis of observable or quantifiable data indicating a discernible patterns of urban growth, structure, and change may detract from or enhance property values is ?
Market Area Analysis
174
Researching and analyzing the number of building conversions in the process would be considered part of WHAT kind of analysis
Supply
175
Fee timesharing
is where the purchase receives a deed that conveys title to a unit for a specific part of the year
176
type of building development designed as a grouping complementary land uses, such as housing, schools, recreation, retail office and industrial parks, contained within a single master development; usually includes common area and common area maintenance obligations in the form of owners association dues
PUD
177
REIT
Real Estate Investment Trust - A corporation or trust that combines the capital or many investors to acquire or provide financing for all forms of real property
178
General Partnership
an ownership arrangement in which all partners share in investment gains and losses an each has personal and unlimited responsibility for all liabilities
179
Rights of use, occupancy, and control, limited to the lifetime of a designated party, sometimes referred to as the
Life Interest – (formerly Life Estate)
180
“the ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires”
Leased Fee Interest
181
Leasehold interest
“the right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease”
182
an easement that is attached to, benefits, and passes with the transfer of the dominant estate
Easement Appurtenant
183
Tenancy in Common
– an estate owned by two or more persons, each of whom has an undivided interest. Can be in any form, 1 person owns 50%, 1 person 5%, each owner is separate from another, no right of survivorship, if one person dies ownership is given to their heirs, not the other owners
184
Joint Tenancy
Joint ownership by two or more persons with the right of survivorship, in this case there is a right of survivorship, if a person dies their ownership goes to the other owners
185
Does Tenancy in Common or Joint Tenancy have the right of survivorship?
Joint Tenancy
186
General Partnerships -
an ownership arrangement in which all partners share in investment gains and losses an each has personal and unlimited responsibility for all liabilities
187
Deed
- a written, legal document that conveys an estate or interest in real property when it is executed and delivered
188
Grantor
is the seller of the property
189
Grantee
is the buyer of the property
190
Grant Deed –
deed containing or having implied by law, some but not all the usual covenants of title, esp. a deed in which the grantor warrants that he or she (1) Has not previously conveyed the estate being granted, (2) has not encumbered the property except as noted in the deed and (3) will convey to the grantee any title to the property acquired after the date of the deed
191
a deed that conveys real estate from a seller but does not guarantee clear title, used by court officials and fiduciaries to convey property they hold by force of law, but to which they do not hold title
Bargain and Sale Deed
192
Reconveyance
pass of title to real property back to the original owner, in a deed of trust arrangement, upon liquidation of the debt the property is reconveyed from a third-party trustee to the trustor (borrower)
193
Contract
a legally binding agreement between two or more persons that represent their promise to do or not to do a particular thing
194
Offer
a manifestation of willingness to enter into a bargain, which creates in the offeree the power of acceptance
195
Executory Contract
– is one that has not been fully performed or completed, something is still left to be done. A listing contract is an example
196
Voidable Contract
is one that results from the failure of the parties to meet some legal requirements.
197
4 Components of a contract?
Competent Parties, Mutual Agreement, Consideration
198
Assignment
the act of transferring an interest in property or some right (such as contract benefits) to another. IT is used commonly by lawyers, accountants, business people, title companies and others dealing with property
199
Novation
- agreement of parties to a contract to substitute a new contract for the old one. It extinguishes(cancels) the old agreement
200
Operation of Law
Bankruptcy, Statute of Limitations and Alteration of Contract
201
Remedies for Breach of Contract
Rescission, Reformation and Injunction
202
Rescission
- the cancellation of a contract by mutual agreement of the parties
203
Things needed in a RE Contract?
Sale Price, Date of Sale, Sales Concessions, Owner of Record, Legal Description, and Personal Property
204
Lease
a contract in which the rights to use and occupy land, space, or structures are transferred by the owner to another for a specified period of time in return for a specified rent
205
Flat Rent Lease
A lease with a specified level of rent that continues throughout the lease term
206
Gross Lease
A lease in which the landlord receives stipulated rent and the landlord is obligated to pay all of the property's operating and fixed expenses
207
Net Lease
A lease in which the landlord passes on all expenses to the tenant
208
Graduated Rental Lease
a lease that provides for specified changes in rent at one or more points during the lease term
209
What kind of lease is a "sweetheart" deal for Landlords?
Escalator Lease, a lease that allows for the lessor to seek reimbursement of operating expenses after specific criteria have been met
210
Market Boundaries
area in which properties are located that would be truly comparable or competitive in the mind of a typical buyers
211
Market Area
the geographic region from which a majority of demand comes and in which the majority of competition is located
212
District
a neighborhood characterized by homogeneous land use: apartments, commercial, industrial, or agricultural
213
a group of complementary land uses; a congruous grouping of inhabitants, building, or business enterprises
Neighborhood
214
Neighborhood is What? and a District is What?
complementary and homogeneous
215
Short-term RE cycles are caused by?
Interest Rates and amount of credit that is available
216
Capital Market vs. Money Market
Long to intermediate-term money instruments (mortgages, bonds, stocks) v short-term money instruments (treasury bills, municipal notes)
217
The FED has how many regional banks, and how many governors?
12 Regional Banks with 7 governors
218
What is the FNMA?
Federal National Mortgage Association
219
Mortgage Assumption
when a buyer purchases a house and take over it existing mortgage, rather than getting a new one at higher or less stable rates this is call a mortgage assumption. Today FHA and VA loans may not be assumed by a buyer in this manner
220
Contract for Deed
where the seller receives regular payments from the buyer, basically the seller provides financing, used when mortgage rates are high, or the seller does not need money
221
Note and Trust Deed
a seller is financing the sale for the buyer, just as in the contract for deed sale, except that in this case, the seller delivers a warranty deed and legal title is passed right away to the buyer and the seller holds a deed of Trust on the property in the same manner as a financial institution.
222
Wrap-around Contract
The seller keeps the existing mortgage on behalf of the buyer, plus lends additional money to cover the price paid above the balance of the loan
223
Amortization
the process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principle, a program of periodic contributions to a sinking fund or debt retirement fund
224
Discount Points
a percentage of the loan amount that a lender charges a borrower for making a loan; may represent a payment for services rendered in issuing a loan or additional interest to the lender payable in advance; also called points. Each discount point is 1% of the original loan amount
225
Desire
a purchaser’s wish for an item to satisfy human needs or individual wants beyond essential life-support needs
226
– the ability of an individual or group to participate in a market, to acquire goods and services with cash or its equivalent
Effective Purchasing Power
227
4 Types of External Market Forces
Governmental, Economic, Social and Environmental
228
External Governmental Forces
Planning, Zoning, Building Codes, Environmental Restrictions, Taxes, Utilities, Transportation, Education, Cultural, Parks and Rec, Police, Fire & Public Safety
229
External Economic forces are?
National Economy, Consumer Price Index, Interest Rates, Availability of Financing, Wage Rates, Types of Employment, Unemployment Rates, Cost of Construction, Rental Rates, Rental Vacancies, Expense Levels
230
What soil type drains better Sandy or Rocky?
Sandy
231
Value
the monetary relationship between properties and those who buy, sell or use those properties. Value expresses an economic concept
232
T/F Value is a Fact and Price is an opinion
False, Price is a fact and value is an opinion
233
Cost
a total dollar expenditure to develop an improvement; applies to either reproduction of an identical improvement or replacement with a functional equivalent, not exchange
234
Price
the amount paid in exchange for a good or commodity. Price is distinguished from value because price becomes a fact when the transaction is consummated as opposed to value, which is an estimate
235
Market Value
The most probable price, as of a specified date, in cash, or in terms equivalent to cash
236
A types of value, stated as an opinion, that presumes the transfer of a property, as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable
Market Value
237
What items must be included on an appraisal report?
ID of property rights, effective date of the value opinion, specification as to whether cash, or other precisely described financing terms are assumed as the basis of the appraisal, spec as to whether the financing terms are at, below or above market interest rates
238
Value in Use
the value of a property assuming a specific use, which may or may not be the properties highest and best use on the effective date of the appraisal
239
Market Value of the Going Concern
the market value of an established and operating business including the real property, personal property, financial assets, and the intangible assets of the business
240
The principle of anticipation is?
the perception that value is created by the expectation of benefits to be derived in the future
241
the result of the cause and effect relationship among the forces that influence real property value
Principle of Change
242
Principle of Supply and Demand
In economic theory the principle that states that the price of a commodity, good, or service varies directly with demand and inversely with supply
243
T/F is RE the Supply side is dynamic and subject to quick changes?
False
244
Principle of Competition
Between purchases or tenants, the interactive efforts of two or more potential purchases or tenants to make a sale or secure a lease
245
"the appraisal principle that states that when several similar commodities, good or services are available, the one with the lowest price will attract the greatest demand and widest distribution
Substitution
246
Principle of Contribution
The amount a component of a property adds to the total value of the property
247
The principle that economies outside a property have a positive effect on its value while dis-economies outside a property have a negative effect on its values
Principle of Externalities
248
Principle of Balance
the principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium, 2v1 or 4v1
249
Principle of Conformity
the principle that real property value is created and sustained when the characteristic of a property conform to the demands of its market
250
Principle of Progression and Regression
Progression is when a cheaper house is surrounded my more expensive houses and regression is the opposite
251
Principle of Opportunity Cost
the cost of options forgone or opportunities not or chosen, or what investments we didn't make to buy real estate
252
What are the agents of production?
Land, Labor, Capital and entrepreneurial efforts
253
What are the four criteria for highest and best use?
Legal Permissibility, physical possibility, financial feasibility and maximum productivity
254
Market Analysis
is the study of supply and demand in a specific area for a specific type of property
255
Market Area
a property markets area is the area from which it demands is found and that contain its direct competition
256
Market Area Analysis
the objective analysis of observable and/or quantifiable data indicating discernible patters or urban growth, structure, and change that may detract from or enhance property values; focuses on four sets of considerations that influence value: social, economic, governmental and environmental factors
257
Microeconomics
individual spheres or activity or patterns and behaviors
258
Sub-market
a division of a total market that reflects the preferences of a particular set of buyers and sellers
259
A Fast food restaurant is a WHAT, within the restaurant market?
Sub-market
260
Market Segmentation
the process by which sub-markets within a larger market
261
Disaggregation
the actual process by which we separate and define markets, must be taken carefully if we wish to get logical and meaningful results
262
Elements of Supply Analysis
Existing Stock, volume of new construction, planned construction, availability and price of vacant land. cost of construction, properties offered for sale, conversions in progress and availability of financing
263
Absorption Rate
the rate at which vacant space in an property or group of properties for sale or lease has been or is expected to be successfully sold or leased
264
Absorption Period
actual or expected period require from the time a property is initially offered for purchase until all portions have been sold
265
Marketability Analysis
A study of how a specific property is expected to perform in a specific market, expands on a market analysis by addressing a specific property
266
Feasibility Analysis
The study of a cost-benefit relationship of an economic endeavor
