Section 6 - Chapter 19 Flashcards
appraisal
opinion of value based on supportable evidence
uspap
uniform standards of professional appraisal practice; appraisal qualifications board basic guidelines
cma
competitive market analysis; based on solds, on market, and expireds
bpo
broker’s price opinion; less expensive alternaitive to value property
4 characteristics of value:
DUST; demand, utility, scarcity, transferability
market value
reasonable opinoin of property’s value
market price;
actual selling price of a property
cost
may not equal either market value or market price
anticipation:
value increases or decrases based on future events
change
real estate mraket changes randomly
competition
interaction of supply and demand
conformity
maximum value when home is in harmony with surroundings
contribution;
value of any one part measured by the effect on the whole
highest and best use:
most profitable single use to which a property may be put
assemblage:
process of merging 2 separately owned lots under one owner
plottage:
amount that value is increased by successful assemblage
regression and progression
lowering or raising of value based on neighbors
substitution;
max value of a house set by how much it would cost to buy an equal substitue
sales comparision approach:
compare your property to other comps just sold
cost approach:
value based on how much to rebuild based on vacant land
depreciation
loss in value due to any cause compared to what it would cost to replace today
income approach:
value based on present value of rights to future income
reconciliation
analyzing and weighing the results of the 3 approaches to finding value
