Term
| Three Approaches to Value |
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Definition
| Sales Comparison, Income Capitalization, Cost Approach |
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| Higher percent of Debt means? |
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Definition
| Larger financial burden to perform and create revenue to sustain operation and make debt payments |
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| What Happens if REE Development goes bankrupts? |
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Definition
| 1st recorded mortgage gets paid, then 2nd, etc |
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| Risk due to debt financing |
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Definition
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Term
| Risk from uncertainty of rents, vacancies, or operating expense |
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| interest or value owner has after liens |
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Definition
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| affect of sales price due to change in interest rates are |
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Definition
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| if IR do change, 1st sign appraisers will see is in value coming from using |
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Definition
| income capitalization approach |
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Term
| approach used most freely in REE |
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Definition
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Term
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| short term financing instruments |
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Term
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| not alot of government control, homogeneous products, small inexpensive items |
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Term
| deed of trust/land contract/conditional sales contract/installment sales |
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Definition
| 3rd party holds deed when mortgage taken out until paid off or sale of REE with seller financing and retaining deed until paid off |
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Definition
reserve requirements, discount rate
instruments: CDs, fed funds, t-bills |
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Definition
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| corporations short term notes |
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Definition
| fannie mae + freddie mac, buy and sell mortgage loans |
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Term
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Definition
| pledge of collateral for REE loan |
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Definition
| established by congress, now independent |
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Definition
| represent full bundle of rights limited by life of person |
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Term
| Son given life estate, upon turning 18 |
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Definition
| mortgage in interest, rent property out, sell, rent |
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Definition
| conveys right of occupancy to another |
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Definition
| rights to use and control space above specific parcel |
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Definition
| give a party right to access property and perform specific task |
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Definition
| project w/ units that are limited vertically and horizontally, and have a % ownership in common elements |
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Term
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Definition
| real property interest held by a lessee and conveying right of use + occupancy for stated term |
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Term
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Definition
joint tenancy, tenancy in common, tenancy by entirety
NOT: TENANCY AT WILL |
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| highest and fullest estate in land |
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Definition
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Definition
| ownership of real property by 2 or more parties w/ undivided interest |
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Definition
| transferable development rights |
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Definition
| require government to compensate for taken land |
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Term
| you buy land, lease it to John |
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Definition
| you have leased fee, john has leasehold |
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Definition
| ownership interest of the landlord when a lease is in effect |
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Term
| you have land for 25 years, only paid 20 years of taxes, what happens |
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Definition
| state has right to sell estate to pay off taxes |
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Definition
| you own land, die, no heirs, state takes property and sells it |
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Term
| fee simple interest limit |
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Definition
| eminent domain, police power, taxation and escheat |
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Term
| deed should be recorder because |
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Definition
| gives public notice of transaction + sets priority |
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Definition
| zoning + environmental protection regulations |
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Definition
| common reference for ownership of REE |
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Term
| bundle of rights includes rights to |
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Definition
| sell an interest, lease and interest, occupy property, mortgage on interest, give interest away |
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Term
| Public and private restrictions |
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Definition
taxation, eminent domain, police power, escheat
private: easments |
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Definition
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Term
| residential vs nonresidential markets |
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Definition
| residential is much more efficient b/c more buyers and sellers, MLS organize data |
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Term
| market analysis is included to |
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Definition
| show support for H+B use + existence of a market |
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Term
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Definition
| group of individuals or firms that are in contact w/ one another for the purpose of conducting REE transactions |
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| retail space demand affected by |
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Definition
| changes in employment opportunities, changes in traffic patterns, fluctuations in disposable income |
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Term
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Definition
| economic activity that enables it to attract income from outside its borders |
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Definition
| land that is improved so that it is ready to be used for a specific purpose |
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Definition
| sites can be created land is fixed |
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Term
| rectangular survey legal description |
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Definition
| part of NW quarter of section 25, township 17N, range 3e |
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| controls land use, development standards |
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| incremental increase in value that results when 2 or more sites are combined to produce greater utility |
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Definition
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| land not needed to support H+B use or not needed to support existing improvements |
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| no improvements, natural state, untouched |
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| 27,878,400 ft = 1 x 1 miles = 1/36th of township |
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| excess can be sold off, surplus cannot |
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| gross area - public right of way |
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Definition
| published by federal emergency management association |
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| legal description of land |
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Definition
| lot + block system, metes + bounds system, rectangular survey system |
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Definition
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Definition
| minimum lot size, utility availability, minimum building size, minimum road frontage |
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Definition
| commonly used in urban setting where lots are small |
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| metes + bounds (distance + direction) |
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Definition
| uses point of beginning, used by first colonies |
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Definition
| hard to describe small parcels, used in rough terrain |
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| commonly used in retail centers |
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| gross leasable area, used in commercial properties |
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| are of building above grade |
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| functional in-utility vs obsolescence |
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Definition
1st. designed for certain people
2. used to work, now outdated |
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Term
| items in need of immediate repair |
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Definition
| item is in need of repair on day of appraisal |
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| H+B use until change occurs |
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| required in all appraisals, may require change in zoning, assumes site is or could be vacant |
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| legally permissible, physically possible, financially feasible |
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| test of legally permissible |
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Definition
| deed + plat restrictions, zoning requirements, building codes, historic district controls, compliance w. lease provision |
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Definition
| small office w/ short lease |
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Definition
| uniform standards of professional appraisal practice |
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Definition
| utility, scarcity, desire, EPP |
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Definition
| land, labor, capital, entrepreneurial coordination |
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| area with one predominate land use type of neighborhood |
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| appraisal may be liable for all but |
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Definition
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Definition
| Legal, geographic and environmental, economic, and social |
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Definition
| most probable selling price |
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Definition
| amount buyer and seller agree upon |
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| factors of value do not include |
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Definition
| effective marketing power |
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Definition
| ability to satisfy human want or need |
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Term
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Definition
| result of cause and effect relationship that affect value of land |
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Definition
| result of value that could be achieved in future |
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| agent of production don't include |
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Definition
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Definition
| Growth, stability, decline, and revitalization |
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Term
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Definition
| sales comparison, allocation, extraction |
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Term
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Definition
| most reliable way to value land |
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| 1st step in appraisal process |
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Definition
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Definition
| cant be calculated with cost method |
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