Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
19 Cards in this Set
- Front
- Back
|
Essential elements or characteristics of value or DUST |
D - Demand U - Utility (usefulness) S - Scarcity T - Transferability |
|
|
Fact. Capitalization is the conversion of future income to present value |
|
|
|
Fact. Sales Comparison Approach - primarily residential |
|
|
|
Fact. Cost Approach / Summation Approach - most effective method for new construction and special-purpose or single purpose buildings |
|
|
|
Fact. Income Approach - income-producing properties, such as apartments, office buildings, or shopping centers. |
|
|
|
Fact. Capitalization is the conversion of future income into present value. |
Capitalization is used to determine the value of income properties. |
|
|
Fact. Outdated lighting fixtures would likely be an example of a curable Functional Obsolescence. |
|
|
|
Fact. A determination of highest and best use is found only in an appraisal. |
|
|
|
Fact. A Competitive Marketing Analysis (CMA) is similar to the Sales Comparison Approach to value. |
|
|
|
Fact. SUBSTITUTION underlies all approaches to value. |
|
|
|
Fact. Land NEVER depreciates. Only IMPROVEMENTS depreciate. |
Fact. Land NEVER depreciates. Only IMPROVEMENTS depreciate. |
|
|
Fact. Depreciation is the loss of value from any cause. |
Fact. Depreciation is the loss of value from any cause. |
|
|
(5) Five Principals of Value 1) Highest and Best Use 2) Substitution 3) Supply and Demand 4) Contribution 5) Conformity |
(5) Five Principals of Value1) Highest and Best Use2) Substitution3) Supply and Demand4) Contribution5) Conformity |
|
|
Remember. Market data approach can also be called the summation approach. |
Remember. Market data approach can also be called the summation approach. |
|
|
Fact. A competitive market analysis uses principles similar to the sales comparison approach to determine value. |
|
|
|
Remember. A large GRM (Gross Rent Multiplier) would be a monthly multiplier and would need monthly rental income to determine value. |
|
|
|
Don't Forget. A small GRM (Gross Rent Multiplier) would be an annual multiplier and would need ANNUAL RENTS, to determine value. |
|
|
|
Fact. In estimating the market value of an income-producing property, an appraiser should use the Net Operating Income. |
|
|
|
Remember. A buyer who wants to know what amount to offer should get a CMA (competitive market analysis) |
|
