-
Amount in money or other measurable means that a prudent a prudent purchaser would be willing to exchange for something else
Value
-
Highest probable price in terms of money which a probable bring in terms of money
Market Value
-
Actual price paid for for a property
Market Price
-
Total dollar expenditure used to bring an improvement into existence
Cost
-
An estimate or opinion of value as determined by an apprasier
Appraisal Value
-
DUST
Demand, Utility, Scarcity, and Transferability
-
Second characteristic of value
Utility
-
Supple of the product in relation to its demand
Scarcity
-
Degree of ease with which a title can be conveyed from a seller to buyer
Transferability
-
-
Value to a particular investor based on his or her investment requirements
Investment value
-
Current worth of a buisness
Going-concern value
-
Amount of coverage necessary to replace or reproduce improvements in the event of damage or distruction
Insurance Value
-
How much it would cost to replace the improvements that look the same and have the same functionality and use
Replacement Value
-
Calculates the cost of reproducing the structure exactly as it was prior to the damage or distruction
Reproduction Value
-
Value assigned for taxing purposes
Assessed Value
-
Value under the governments power of eminent domain
Condemnation value
-
FIRREA
Financial Institutions Reform, Recovery, and Enforcement Act
-
4 Ways to accurately measure the value of real property
- Physical or environmental forces
- Economic and Financial Trends
- Governmental controls and regulations
- Social ideals and standards
-
Most profitable use to which a property may be adapted, given legal and size retraints
Highest and best use
-
Implies that value can increase or decrease in anticipation of some future benefit or detriment that will affect the property
Anticipation
-
The value of any componets of property equals the value its addition contributes to the value of the whole property
contribution
-
Holds that for any good or service to be produced, expenditures must be made for the "agents of production"
Surplus Productivity
-
Adding improvements to land and structures creates an equivalent increase in the property value
Balance
-
Value of property will be set by the cost of the purchasing an equally desirable substitute
Substitution
-
Capital used to invest in a particular project forgoes the opportunity to utilize the financed resources for some other projects
Opportunity cost
-
Within a given area, properties will maximize thier value if they are homogeneous or compatible
Conformity
-
Having positive or negative effect on value
externalities
-
Process of joining the ownership of two or more adjoining separate plots into one
Assemblage
-
The value of a better property is negatively affected by the existence and proximity of inferior properties
Regression
-
Opposite of regression
progression
|
|
