SQUARE MILE 640 ACRES

National Real Estate Valuation/Appraisal Flashcards accelerated depreciationmethod that depreciates fixed assets more during the earlier years of their useful life and less during the later years - Does not cause accrued depreciation

SQUARE MILE640 ACRES

functional obsolescence.A four-bedroom house has a master bedroom with no connected bathroom depreciationloss of value due to any reason special assessmenta tax levied against specific properties that will benefit from a public improvement.appraisal reportsletter, the short report and the narrative

sales comparison approachtakes into consideration: property right, financing

concessions, market conditions, conditions of sale, location, amenities ConformityAn appraisal principle of value based on the concept that the more a property or its components are in harmony with the surrounding properties or components, the greater the contributory value.millage ratederived by dividing the tax requirement by the tax base.$576,000Using a 12% capitalization rate, an apartment complex is valued at $480,000. Find the value of the same property if a 10% cap rate is used.market priceamount of money a property is likely to command in marketplace 14th AmendmentThe right to exert public land use control is primarily authorized by bulk zoningA form of zoning which regulates density conditional use permitA convenience store may be permissible in an industrial zone under the authorization of Economic lifetime period between the purchase value of an improvement and its salvage value.capitalizationA mathematical process for estimating the value of a property using a proper rate of return on the investment and the annual net operating incomes expected to be

produced by the property. The formula is expressed as:

Income ÷ Rate = Value.The Unit-in-Place methodestimating costs per square foot.Assemblageis the combining of two or more adjoining lots into one larger tract to increase their total value Market Valuevalue type most often sought by an appraiser Metes and Bounds Systemdescription starts at a designated place on a parcel called a Point of Beginning (POB). The description then describes

the perimeter of the tract by reference to linear measurements and directions.

FUNCTIONAL OBSOLESCENCEmay be attributable to such things as outmoded plumbing fixtures, inadequate closet space, poor floor plan, excessively high or low ceilings, or antiquated architecture.Income Capitalization Approachfor income generating properties, Income divided by Cap Rate = Value progressionAn appraisal principle that states that, between dissimilar properties, the value of the lesser-quality property is favorably affected by the presence of the better-quality property.Market Data ApproachThis approach compares the subject property to similar properties and makes adjustments on the basis of the date of the sale, the location, the physical features Rectangular Survey SystemPrincipal Meridians run north and Base Lines run east and westgovernment survey system neighborhood analysis.looking at a shopping center, the distances to schools and availability of shopping AnticipationProperty can increase or decrease in value in expectation of something in the future

• acre43,560 square feet.

valuecreated by demand, utility, scarcity and transferability Economic obsolescencea loss of value resulting from extraneous factors that exist outside of the property itself such as airport or industrial plant built next to regressionA principle that says the value of a home is held down by the other homes in an area. This is usually said about the "best" home in the "worst" area.6A property valued at $150,000 earns $750 per month. What is the annual percent of return?market valueMost probable price the property will sell for in an arm's-length transaction under normal conditions on the open market Effective AgeDiffers from the actual age (chronological age) by such variable factors as depreciation, quality of maintenance Gross Rent Multiplier (GRM)Value ÷ Monthly rent tax basethe total of the appraised or assessed values of all real property within the area's boundaries ( assessed values - exemptions) Ad valorem taxesbased upon the assessed value of the property InjunctionRestrictive covenants are enforced by millis one one-thousandth of a dollar ($.001). A tax rate of one mill means that the owner pays one dollar for every thousand dollars of assessed value Unit in place", the replacement cost of a structure is estimated based on the construction cost per unit of measure of individual building components, including material, labor, overhead

and builder's profit Income Approachappraisal method using rate of investment return