Unit 3-1

  1. Amount in money or other measurable means that a prudent a prudent purchaser would be willing to exchange for something else
  2. Highest probable price in terms of money which a probable bring in terms of money
    Market Value
  3. Actual price paid for for a property
    Market Price
  4. Total dollar expenditure used to bring an improvement into existence
  5. An estimate or opinion of value as determined by an apprasier
    Appraisal Value
  6. DUST
    Demand, Utility, Scarcity, and Transferability
  7. Second characteristic of value
  8. Supple of the product in relation to its demand
  9. Degree of ease with which a title can be conveyed from a seller to buyer
  10. Value-in-Use
    Use Value
  11. Value to a particular investor based on his or her investment requirements
    Investment value
  12. Current worth of a buisness
    Going-concern value
  13. Amount of coverage necessary to replace or reproduce improvements in the event of damage or distruction
    Insurance Value
  14. How much it would cost to replace the improvements that look the same and have the same functionality and use
    Replacement Value
  15. Calculates the cost of reproducing the structure exactly as it was prior to the damage or distruction
    Reproduction Value
  16. Value assigned for taxing purposes
    Assessed Value
  17. Value under the governments power of eminent domain
    Condemnation value
  18. FIRREA
    Financial Institutions Reform, Recovery, and Enforcement Act
  19. 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
  20. Most profitable use to which a property may be adapted, given legal and size retraints
    Highest and best use
  21. Implies that value can increase or decrease in anticipation of some future benefit or detriment that will affect the property
  22. The value of any componets of property equals the value its addition contributes to the value of the whole property
  23. Holds that for any good or service to be produced, expenditures must be made for the "agents of production"
    Surplus Productivity
  24. Adding improvements to land and structures creates an equivalent increase in the property value
  25. Value of property will be set by the cost of the purchasing an equally desirable substitute
  26. Capital used to invest in a particular project forgoes the opportunity to utilize the financed resources for some other projects
    Opportunity cost
  27. Within a given area, properties will maximize thier value if they are homogeneous or compatible
  28. Having positive or negative effect on value
  29. Process of joining the ownership of two or more adjoining separate plots into one
  30. The value of a better property is negatively affected by the existence and proximity of inferior properties
  31. Opposite of regression
Card Set
Unit 3-1
Valuation and Market Analysis Part 1