Flashcards
REVM FLASHCARDS
Cards in this deck (20)
- 1what is eminent domain?the govt has ultimate control over the land and can compulsoritly acquire it
- 2What are the economic characteristics of land?-market ltd to geographic area
-thin trading (trends hard to spot
-income derived by externalities
-property is heterogeneous - 3Define Joint tenantstwo people in joint ownership, if one dies the other automatically receives their share
- 4Define Tenants in CommonTwo or more people with divided shares in a property as specified (eg 30/70)
each person can leave their share to someone else in their will - 5Define sole ownershipA person who own a property by themselves
- 6Which is the mortgagor/mortgageeMortgagor is poor, is the borrower
Mortgagee is the bank. - 7What is a flat mortgage?interest only mortgage,
often shorter term 3-5 years - 8What is a table mortgage?Equal payments
consisting of principal and interest
-use an amortisation table to work out - 9What are the 3 R's of credit?Returns
Repayment capacity of borrower
Risk bearing ability - 10What are the 5 C's of credit?Character
Capacity to pay
Collateral
Capital
Conditions - 11What is the mirror principle?The register accurately mirrors the legal position of the piece of land
- 12What is the curtain principle?anyone investigating shouldn't need to look behind the curtain of the register
- 13What are the three components of value?value is related to a combination of
a property's income producing ability,
prices paid for similar properties
a property's cost to replace - 14What is Vp accoding to Ratcliffprice in dollar terms
a prediction
a probability
a pragmatic objective value - 15What are the four characteristics of value?utility
scarcity
demand
transferability - 16Are rating valuations usually higher or lower than market value?rating valuations have a reputation for being conservative (on the low side)
- 17What are the steps in the valuation process?1. receive instructions
2.define the problem
3. inspect the property
4. collect data
5 analyse data
6 select valuation approaches
7. calculate and compare results
8 write and despatch report - 18What is the sales approach and what concept is it based on?Comparing the target property
with similar sales in the area.
Based on substitution. - 19What are the steps in the sales comparison method?1 Collect & verify sales and physical data
2. Select the most comparable sales
3. Analyse sales - (unit of comparison)
4 Compare sales evidence to subject
5. Estimate the value of the subject property - 20What adjustment may be required to sales information when using the sales comparison method?adjustments for time
structural improvements
land (depth tables &
area comparison)
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- flashcards for real estate valuation and management
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- waipumum
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