Second Half Term Flashcards
What is an appraisal?
Estimate or opinion of value based on analysis of relevant data made by a qualified person know as an appraisal.
Uniform Standards of Professional Appraisal Practices
Sets the standards by which all appraisals must be completed and it also defines the conduct of the appraisal.
The Appraisal Qualifications Board
Sets the requirements to acquire and maintain certifications.
Staff Appraisers
People employed by lending institutions or insurance companies to make appraisals for their employers.
Fee Appraisers
Self-employed persons who perform their services on an individual basis
Value
What the property is worth or what it might sell for on the market.
Market Value
Represents the most probable selling price in a transaction.
Market Price
Actual money paid in the transaction.
Cost
Sum of all past expenses that have gone into bringing a property into being.
Requisites of Value
DUST: Demand, Utility, Scarcity and Transferability
Principles of value
- Principle of supply and demand
- Principle of highest and best
- Principle of substitution
- Principle of conformity
- Principle of change
- Principle of progression and regression
- Principle of competition
- Principle of increasing and decreasing returns
- Principle of contribution
- Principle of anticipation
Factors influencing value
- Location
- Size and Shape
- Depth tables
- Soil Characteristics
- Key Lot
- Assemblage
Key Lot
A lot that joins to the rear of a corner lot
Assemblage
Process of combining several individually owned adjoining parcels into one track
Plottage
Two or more tracks parcels assembled to create one large parcel that results in greater utility and therefore an increase in value.
