Terminology Flashcards
Vocabulary Knowledge
Anticipation
Present worth of future benefits associated with ownership of property.
Balance
Maximum value is obtained when the four agents of production (scarcity, utility, desire, & purchasing power) attain a state of equilibrium.
Change
The tendency of social and economic forces affecting supply and demand to alter over time.
Competition
Availability must be in harmony with demand.
Conformity
The value of property depends in part, in its relationship to its surroundings.
Consistent Use
States that a property must be valued with a single use for the entire property.
Contribution
The basis for applying the adjustments in the sales comparison approach.
Demand
Quantities of various goods that people are willing and able to buy during some period, given the choices that are available to them.
Direct Costs
Expenditures for the labor and material used in the construction of improvements.
Eminent Domain
Taking private property for public use.
Entrepreneurial Profit
A market derived figure that represents the amount a developer expects to receive for his or her contribution to a project including risks.
Escheat
Transfers the property of a person who dies without heirs to the state.
Externalities
Factors external to a property can have either positive or negative effects on its value.
Indirect Costs
Expenditures for items other than labor and materials.
Supply
The amount of product that producers are will g to sell under various conditions during a given period.
