Real Estate Chapter 20 Appraisal Flashcards

Real Estate Chapter 20 Appraisal Flashcards princple of contributionThis principle of appraising states that an amenity or a special feature of a property will contribute to its value.straight line depreciationThis method of depreciation assumes that the depreciation will occur at an even rate over the projected economic life of the property.principle of highest and best useThe use is "that possible and legal use or employment of land that will preserve its utility and yield a net income flow in the form of rent that forms, when capitalized at the proper rate of interest the highest present value of the land." certified residential appraiserThis appraiser is qualified to appraise one to four residential units without regard to value or complexity, but it does not include the appraisal of subdivisions.femaA federal agency who purpose is to help in emergency situations that would overwhelm state or local governments. It also manages the National Flood Insurance Program.law of decreasing return sThe principle of appraising states that at some point additional improvements will not increase the value.licensed residential appraiserThis type of appraiser is qualified to appraise non-complex one to four units having a transaction value of less than $1,000,000 and complex one to four residential units having a transaction value of less than $2,000,000, but it does not include the appraisal of subdivisions.principle of supply and demandThis principle of appraising states that the number of homes in the market and the number of qualified buyers for those homes will affect the prices of the homes.objective opinion of valueThis opinion of value is based on market data that can be supported.certified general appraiserThis appraiser is qualified to appraise all types of real property.market approachThe method of appraising used to estimate the value of a single family home or vacant land. The appraiser makes adjustments to comparable properties that have recently sold to estimate the market value of the subject property.Principle of SubstitutionThis economic principal is the foundation for the market approach to appraising. Appraisers recognize that consumers, when offered two identical products, will choose the less expensive.effective ageThe age of a property based on construction and maintenance.

principle of conformityThis principle of appraising states that a property will have maximum value when it is surrounded by similar, conforming properties.physical depreciationThe normal "wear and tear" of a building; depreciation caused by lack of maintenance.Principal of anticipationThis economic principle states that value will increase or decrease based on the expectation that certain events will occur.trainee appraiserThis appraiser is qualified to appraise properties that the supervising certified appraiser is qualified to appraise.law of increasing returnsThis principle of appraising states that the money spent on the improvements produces a proportionate increase in value.principle of changeThis principle states that neighborhoods and communities go through cycles from growth, equilibrium, decline and restoration.assemblageThe process of joining two or more adjacent tracts of land to create a larger plot.incurable depreciationThis term means that the repair cannot be corrected for a reasonable cost, or that it can't be corrected at all.curable depreciationThis term means the repair can be made for a reasonable cost.principle of competitionA principle of appraising that states excess profits will attract competition.economic lifeThis is the time period in which a structure contributes to the value of the land and is different than the physical age.princple of progressionThis principle states that when a less expensive property is surrounded by more expensive properties, the less expensive property will increase in value.plottage valueThe value that is created when two or more tracts of land are assembled or joined.reconciliationThe term used by appraisers and real estate agents to describe the process of evaluating the data of their market analysis on multiple properties to arrive at a final estimate of value.market valueThe highest price, in money, a willing buyer will pay and which a willing seller will accept. It assumes that both parties are well informed or well advised, each acting of their own free will, neither being under any undue pressure; no unusual financing; property was exposed to the market for a reasonable period of time.