RE Financing Ch.9 Qualifying the Property Quick key terms

  1. Appraisal
    estimated value
  2. Apprasier
    estimates value
  3. Market value
    current value
  4. Loan-to-value ratio (LTV)
    relationship of loan amount and either sales price or appraised value
  5. Sales comparison method
    appraisal sales price of comparables
  6. Subject property
    property being appraised
  7. Comparables
    comparables to subject
  8. Competitive market analysis (CMA)
    real estate agent's estimated value
  9. Normal conditions of sale
    unrelated parties, knowledge of defects, willing, open market
  10. Replacement cost method
    • cost of replacement minus depreciation add value of land
    • -compare to comparables
  11. Replacement cost
    cost of construction to similar property
  12. Reproduction cost
    cost of replica of property
  13. Depreciation
    loss in value
  14. Physical deterioration
    wear and tear depreciation
  15. Functional obsolescence
    poor design depreciation
  16. External obsolescence
    outside factors depreciation
  17. Income method
    rental value
  18. Gross income multiplier method
    rental appraisal method
  19. Economic retn
    current market rent
  20. Contract rent
    noncurrent market rent
  21. Reconciliation
    final appraisal value estimate
  22. Low appraisal
    value is lower
  23. Request for reconsideration of value
    agent to lender re-valuation request of property
Card Set
RE Financing Ch.9 Qualifying the Property Quick key terms
qualifying the property key terms