Valuation Flashcards
Learn the principles and methods of property valuation, including appraisal techniques and market analysis.
Which real estate term is this?
An assessment of the market value of real property by a licensed professional, often for lenders.
Appraisal
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The valuation service performed by an appraiser, including appraisal and appraisal review.
Appraisal Practice
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The formal report prepared under the Uniform Standards of Professional Appraisal Practice.
Appraisal Report
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A person approved to perform appraisals under the supervision of a supervisory appraiser.
Appraiser Trainee
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An individual authorized to appraise all types of real property, including residential and commercial, without a value limit.
Certified General Appraiser
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A person certified to perform residential property appraisals of 1-4 unit properties, without limits on transaction value or complexity.
Certified Residential Appraiser
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An appraisal where the property, ownership, or market conditions are atypical.
Complex Appraisal
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A valuation method estimating property value based on replacement cost.
Cost Approach Valuation
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Valuation concept determining the most reasonable and valuable use of real property.
Highest and Best Use
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An appraisal method basing value on revenue a property should generate, using the capitalization rate.
Income Approach Appraisal
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Th amount of money that would be required to completely replace a particular structure or building.
Insurance Value
(aka, replacement value)
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The value of the property to a particular investor usually derived from the income it will produce for the period of time when it is in use.
Investment Value
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An estimate of the amount of money that could be gained if the property was quickly sold in a low-demand market, and often is used for a property that has to be auctioned or is being sold after foreclosure.
Liquidation Value
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Estimates the value of a property by comparing it to similar properties that have sold in the local market, accounting for differences between the evaluated property and the comparison properties.
Market Comparison/Sales Comparison Approach
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The actual sale price of a property.
Market Price
Which real estate term is this?
The dollar amount that the property, in its current state, would reasonably be expected to sell for on the open market.
Market Value/Fair Market Value
Which real estate term is this?
A property’s taxable value limit established for each property.
Maximum Assessed Value
(MAV)
Which real estate term is this?
Value not influenced by personal feelings or opinions.
Objective Value
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Refers to something becoming outdated and of lesser use or value over time.
Obsolescence
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Term used by local jurisdictions to assess property for tax purposes, reflecting expected sale price.
Real Market Value
(RMV)
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Valuation of property to determine a base value for tax purposes.
Real Property Assessment
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Amount required to completely replace a structure or building.
Replacement Cost or Value/Insurable Value
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Amount needed to exactly replicate a property.
Reproduction Cost
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Value based on personal feelings, tastes, and opinions.
Subjective Value
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Commonly used form in real estate appraisal of single-family dwellings.
Uniform Residential Appraisal Report
(URAR)
Which real estate term is this?
Guidelines for appraisal standards at the federal level.
Uniform Standards of Professional Appraisal Practice
(USPAP)
Which real estate term is this?
A loss in property value due to aging and wear.
Depreciation
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Amount of money that could be gained if the property was quickly sold in a low-demand market, often used for a property that has to be auctioned or is being sold after foreclosure.
Distress Sale
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Value loss in a property due to external factors like zoning changes.
Economic Obsolescence
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Refers to the long time required to pay off land and improvements.
Fixity
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Loss of value in a property improvement due to unchangeable qualities.
Functional Obsolescence
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Property valuation tool using annual income as a numeric multiplier.
Gross Rent Multiplier
