Valuation

Question 1

Location of the property

Answer 1

Situs

Question 2

method determining the value of property using

Answer 2

CMA

Certified market analysis

Question 3

Informal estimate of value

Answer 3

Market Analysis

Question 4

DUST

Answer 4

Acronym for the four determinants value: demand, utility, scarcity, and transferability

Question 5

Expectation of benefits to be derived in the future

Answer 5

Anticipation

Question 6

The active demand for real estate in short supply

Answer 6

Competition

Question 7

The principle that properties that are similar in style, size, quality, etc. will maintain a hiqher value

Answer 7

Conformity

Question 8

The value of a particular component of a property.

Answer 8

Contribution

Question 9

Conditions outside the property which affect the value of the property.

Answer 9

Externalities

Question 10

The use which will bring the highest price for a particular property.

Answer 10

Highest and Best Use

Question 11

The effect that inferior and superior properties in the same vicinity have on each other. The superior property will add value to the inferior property and the inferior property will decrease the value of the superior one.

Answer 11

Progression

Regression

Question 12

When two commodities are similar, the one with the lowest price will attract the greatest demand. The basis for the sale comparison approach

Answer 12

Substitution

Question 13

If there is a difference in value in two similar properties, the difference is attributed to the land or location.

Answer 13

Surplus Productivity

Question 14

Method of estimating value by calculating the cost to build it.

Answer 14

Cost Approach

Question 15

The cost at current prices to replace a building with one of equivalent utility

Answer 15

Replacement Cost

Question 16

The cost at current prices to produce an exact duplicate of a building.

Answer 16

Reproduction Cost

Question 17

Loss in value due to wear and tear

Answer 17

Physical Depreciation

Question 18

Loss in value due to outdated design or technology.

Answer 18

Functional Depreciation

Question 19

Loss in value to due conditions outside the property.

Answer 19

External Depreciation

Question 20

Any type of depreciation in which the amount of money spent to correct the deficiency is less than the resulting increase in value.

Answer 20

Curable Depreciation

Question 21

Any type of depreciation in which the amount of money spent of correcting the deficiency is greater than the resulting increase in value

Answer 21

Incurable Depreciation

Question 22

The apparent age of the property based on the condition of the property

Answer 22

Effective Age

Question 23

The period of time over which a property may be expected to be useful.

Answer 23

Economic Life

Question 24

A technique for estimating the value of property by comparing it to similar properties in the same area

Answer 24

Sales Comparison Approach

Question 25

Estimates the present worth of a property’s expected future income; used for rental property.

Answer 25

Income Approach

I/R=V

Question 26

A rough estimate of the value of rental property based on gross rents; use monthly rent for residential, yearly for commercial

Answer 26

Gross Rent Multiplier

GRM X rent = value

Question 27

Additional time within which to pay a debt, from the time of default to the actual foreclosure sale

Answer 27

Equitable Right of Redemption