Module 6 Appraisal Flashcards Preview

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Flashcards in Module 6 Appraisal Deck (9)
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1
Q

Define: Condemnation

A

A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner. 60

2
Q

Define: Assessed value

A

The value set on property for taxation purposes. 225

3
Q

Elements of Value (DUST)

A
D= Demand
U= Utility
S= Scarcity
T= Transferability
4
Q

Economic principles

A
  • Supply and Demand
  • Change
  • Substitution
  • Highest and best use
  • Conformity / Regression
  • Contribution Over improvement
5
Q

3 Basic valuation Techniques

A
  • Comparable sale report - Market data report
  • Income Approach
  • Revenue, Expense and net
  • Capitalization technique
  • Cost approach
  • Deprecation
6
Q

Steps in the appraisal process

A
  1. State the purpose
  2. List type of data you need and the sources
  3. Gather, record, and verify the general date
  4. Analize and interpret the data
  5. Prepare the appraisal report.
7
Q

How many years does an appraisal have to keep that record for?

A

5 Years

8
Q

Define: Market Value

A

The most probable price that a property would bring in an arm’s-length transaction under normal conditions on the open market. 300

9
Q

Market Price:

A

Amount of money a buyer is willing to pay in an open and competitive market.