real estate value influence Flashcards

real estate value influence Flashcards as the depth of the lot increases, the value per front footage.increases at a decreasing rate.are related to the vital characteristics of value Demand and effective demand is form of revitalization and accompanied by displacement of current residents.Gentrification Easement by necessitywhen property is landlocked.The perceived rarity or undersupply of real estate, defines which vital characteristic of value?

SCARCITY

Easement by prescription iswhen the use has existed over a period of time.Scacityis a value characteristic, not a broad force effective demandrefers to how many people have the ability or purchasing power to buy a product or service.Buyer preferences & needs are part of the broad social forces Demand & effective demand are related to the vital characteristics of value.Buyer preferences & needs are part of the broad social forces.Demand & effective demand are related to the vital characteristics of value.how is the net operating income ratio (NIR) calculated?the NIR is calculated by dividing the NOI by the effective gross income.

Radon is a:Naturally-occurring dangerous gas. By product of decaying

radioactive material in the earth

in a deed, the party conveying title is known as the:Grantor

the subject property is encumbered by a six month lease that provides for the lessee to pay for all taxes, insurance, & maintenance on the property. what type of leasehold estate do the lease terms reflect?Estate for years defined beginning and expiration of more or less than a year.as it is related to highest & best use, the state of balance is considered to be when the four agents of production are in optimal balance.The physical force in relationship to value? Size is a physical force Demographicsare an element of social forces, another broad force In order to determine if the improvements contribute value to the property, it is important to determine the legal & physically possible use that will create the greatest overall return to the land.Demandrefers to how many people desire to purchase a product or service.In order to determine if a property feature is experiencing diminishing returns or increasing returns, the feature is measured in context of its contribution versus its COST Economic forcesinclude revenue-generating laws by the government-taxation & specific tax policies that impact real estate.what type of value usually reflects a property's acquisition cost minus accumulated depreciation?Book Value

in a deed being used in a purchase transaction, who is the grantee?Purchaser Supply & demandis a factor of the broad force of economic state.Demographic changes include changes within the population affecting population growth & GROWTH RATE & ARE A PART OF SOCIAL FORCE.Supply & is an economic force. Location is a physical force.The broad force affecting value that reflects buyer

preferences and needs is known as:

Social force When a neighborhood is properly defined considering all elements, the neighborhood will continue to age as one unit .Easement by implication isalso implied method through apparent long-standing use.Unit of comparisonwhen the appraiser the data based on square foot sale prices or other such analyzes comparative units.

An analysis of market conditions is an observation of :Change

Demographics changes include changes within the population affecting population growth & growth rate are a part of social force.Determining financial feasibility of a contemplated highest

& best use should include an assessment of:

External obsolencence when growth has leveled & prices & demand are still strong.the neighborhood is experiencing stability.Highest & best usethe appraiser highest & best use opinion must be appropriately supported.The Appraisal standard boardImproves the USPAP.Progressionis an affect on a particular property or properties that is realized from external conformity.Refers to a perception due to something in the past that do

not exist anymore:

Stigmatism Easement by necessity iswhen a property is landlocked.

Supply and demand is a factor of:Broad force of economic state.

Book value is most closely related to:accounting and assets.

An appraiser has accepted an assignment for single-family residential property located in a commercially zoned are where no residential use is permitted. Which value characteristics suggest that the the structure may need to be razed or converted in a market value assignment?

UTILITY

Environmentis a force found in physical forces.Competitive supply analysisis a compilation of general market data that looks at existing & planned construction as well as construction in process & demolitions.Which four characteristics are required to establish value in real estate?Demand, utility, scarcity, transferability or "D-U-S-T" or desire,utility, scarcity, and effective purchasing power.The process of combining two or more parcels of land into one larger parcel is known as assemblage Easement by implicationis an implied method through apparent long-standing use.

The operating expense ratio(OER)) is the ratio of total operating expenses to effective gross income(EGI) expressed as a percentage.operating expense divided by effective gross income =

(OER%)

when valuing a life estate for potential sales transaction of that particular interest, what must the appraiser do?Project future value at the termination of the life estate & discount to present value.Neighborhood life cycleAs growth commences & continues, property values tend to rise.Gentrification is aform of revitalization.what is the primary purpose of the highest & best use analysis?to establish the contributory value of the improvements.Interest rates and the resulting effect on real estate markets are most related to which broaD FORCE AFFECTING value?Economic forces are cost of money & interest rates.When there are significantly more homes for sale than buyers, what type of market is present?Buyer's When several offers have been received soon after a property is offered on the market, it could be a strong indication that which value characteristic is present.DEMAND refers to how many people desire to purchase a product or service.A neighborhood has fully developed and now enjoys high demand with prices remaining strong. Which stage of the neighborhood life cycle is the property currently in?Stability When an improvement is made that contributes less than its cost.the law of decreasing returns is being realized.Which vital characteristic of value is affected when, due to deed conditions, a property's owner is limited to whom they can or cannot sell or lease the property?Transferability Immobility of real estate can be positive when the immediate market is strong. if real estate were mobile, more real estate could be brought in from outside the market, thus increasing supply & lowering values in the immediate market.remaining economic life describes how much longer a building can serve its intended purpose & have more income than expenses.what are four independent market factors that must be present to create value?desire, utility, scarcity & effective purchasing power.Regression is specifically related to conformity----the properties surrounding a particular property.If radon were found to be present on a particular property, the condition would be considered.an internal environmental condition,usually curable through remediation.A residential building site does not have adequate site area on which to construct a house while observing the minimum building size per zoning. Therefore, the value of the site will be most affected by which vital characteristic of value?

UTILITY

Easement by express reservationthe owner reserved the access for himself.Amenities & physical differences are most likely to be address by a dollar adjustment.Date of sale, financing condition, terms of sale are mostly addressed by percentage adjustment.

Four forces that influence real estate values are:PEGS = Physical, Economic, Governmental & Social In a neighborhood where supply & demand are in balance, rent is generally established based upon what an equally

desirable space can command based upon the principle of:

Substitution...Demographicsare an element of social forces another broad force.Demographic changes include changes within the population growth and growth rate.blueprints, dimensions, finish material, etc , for a proposed subject dwelling would be considered what type of data?specific Fiscal & monetary policies aregovernental functions & are part of the broad governmental forces.There are four great forces that affect value. Which would be a physical force affecting value?Climate is physical influence or force.Fiscal and monetary policies are most closely related to which broad force affecting value?Governmental broad forces If a single family historic home currently is limited to that use by zoning & is prohibited from being razed, the highest

& best use would be:

As improved Buyer preference & needs are part of the broad social forces.Demand & effective demand are related to the viatl characteristic of value.could affect the value of the property if it continues, it could be temporary or not having long-term impact, less permanent and result in external obsolescence.Nuisance Government police power of enacting & enforcing building codes is part force of the governmental broad.Easement by prescriptionwhen use has existed over a period of time.There is only one true constant variable related to the value of real estate it is Change After a neighborhood has undergone revitalization, the next

phase to typically occur is:

Stability A increasing return:results from something within a property in reflection to its cost.Is a state of supply and demandBalance if the highest & best use of a vacant land parcel is for development, an appraiser must then determine.what type of improvement should be built.The cost of money & interest rates arerecognized as part of broad economic forces.In order for revitalization to occur in a neighborhood life cycle, what phase in that cycle immediately precede it?Decline A tract of agricultural land with riparian rights to an adjoining waterway would enjoy a strong positive affect on value thru which broad force affecting vaule?Proximity of the property to water supply or exposure is a physical force> Environmental concerns in or around a property are an influence related to which force affecting value?Physical forces include environmental, topography, water, location, and climate. utility is a element of the value characteristic. not force.