Ch. 15 Real Estate Value FC

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Flashcards on Ch. 15 Real Estate Value FC, created by Laila Enchante on 31/08/2015.
Laila Enchante
Flashcards by Laila Enchante, updated more than 1 year ago
Laila Enchante
Created by Laila Enchante about 9 years ago
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Question Answer
Ridge The top intersection of two opposite adjoining roof surfaces
roof rafters The structural members that support the roof
gutter The trough that gathers rain water from the roof
studs the vertical wood members of the house, usually 2" x 4" generally spaced every 16". Interior walls that are not load bearing may you 2" x 3" studs
Joist The structural members that hold up the floor or ceiling, usually 2" x 10" or 2"x12" spaced 16" apart
Subflooring the plywood or composition board laid over the joists
underlayment The sheets of plywood or composition board laid over sulfuring to attach finish floor covering (vinyl or hardwood).
Foundation wall the wall of poured concrete or concrete blocks that rests on the footing and supports the remainder of the house.
Beam or girder A main beam upon which floor joists rest. Usually of steel, but also of wood.
Eaves or overhang the portion of the roof that extends beyond the exterior wall generally 1 to 3 feet.
Soffit the material used to finish and enclose thieves or overhang
column additional support under a beam or girder sometimes called a lolly column (steel tube filled with concrete)
value the subjective feelings, emotions and desires of people
Price by contrast, amount of money a buyer offers on property for sale or the actual amount of money that is paid for a property
Charateristics of value Demand Utility Scarcity Transferability (DUST)
Principles of Value 1. Conformity 2. Substitution 3. Progression 4.Regression 5. Anticipation 6. Highest and Best Use 7. Contribution 8. Increasing and Diminishing Returns 9. Plottage
Assemblage merging adjacent
Appraisal An ________ of real property is a professional written and defensible estimate of value that is determined by technical analysis
Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) Mandates state licensing involving financing with a federal institution or agency
Board of Certified Certified Residential Appraiser Certified General Appr. Certified Broker/ Appr. Certified Evaluator
market value is the worth of a property in the marketplace; price that a buyer will offer and seller will accept for a particular property, the buyer and seller enter into a fair sale and without facing any undue pressure to act; both parties are well informed, typically motivated, enough exposure in the open marketplace
market price is the actual price at which a property is sold
Subject property This method is based on comparing the property being appraised
Comparable properties "comps" other similar properties
To make an accurate comparison 1) be as similar to the subject property as possible 2) be as close in proximity to the subject property as possible 3) have sold within 1 year prior to the appraisal (preferably within 6 months prior to the appraisal)
Comparative (competitive) market analysis is used by real estate agents to help a buyer determine an offering price to purchase real property or to help a seller arrive at a realistic price when listing a house for sale
Reproduction cost is the cost at current prices to construct an identical house or building to that of the subject property
Replacement cost is the cost at current prices to construct an substantially similar house or building to that of the subject property
Depreciation is a decline in value
Physical deterioration the normal wear and tear use of property as well as acts of nature
Functional Obsolescence This type of depreciation would apply when some function of a building is out of date with contemporary housing standards
External depreciation Based upon a poor location or negative factors in the surrounding neighborhood a property could decline in value; economic depreciation; locational depreciation
economic age life method (straight line method) somewhat inexact means of determining the amount of depreciation to be found in a property being appraised
Capitalization is the process of determining the present value of a property from its future income
Reconciliation in real estate appraisal, is the process of coming to a final conclusion of value usually by choosing the one approached to value that is most suitable for the property being appraised
never to be averaged values resulting from the three approaches are ____________________
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