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Real Estate Appraisal

Principles 2 Chapter 14
Horizontales
The rate of return a property will produce on the owner's investment.
An estimate of value based on current construction costs, less depreciation, plus land value.
An appraisal principle stating that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property, assuming that no costly delay is encountered in making the substitution
The process of estimating the value of an income-producing property by capitalization of the annual net income expected to be produced by the property during its remaining useful life
The construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original
The process of estimating the value of a property by examining and comparing actual sales of comparable properties
The ratio used to convert annual income into market value in appraising industrial and commercial properties
The period of time during which a structure may reasonably be expected to perform the function for which it was designed or intended
The final step in the appraisal process, in which the appraiser weighs the estimates of value received from the sales comparison, cost and income approaches to arrive at a final estimate of market value for the subject property
The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot
A loss of value in property due to any cause, including physical deterioration, functional obsolescence, and external obsolescence
Verticales
A comparison of the prices of recently sold homes that are similar to the subject home in terms of location, style, and amenities. Complied by a broker or sales agent to assist a seller in determining a listing price.
A reduction in a property's value resulting from a decline in physical condition
A loss of value to improved real property due to inadequate, outmoded, or inappropriate improvements
A figure used a a multiplier of the gross monthly rental income of a property to produce an estimate of the property's value
An estimate of the quantity, quality, or value of something. The process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value.