What is

the ability of a product to satisfy a human want, need, or desire.

Utility

This value answers the question: "What can be done with the product?"

The price

a willing buyer will pay and a willing seller will sell for, if neither is under undue pressure.

Market Value

This is where the text for the back of your card should go.

What are

the Four Characteristics of Value

They are....

Demand
Utility
Scarcity
Transferability

What is

the the purpose of USPAP?

The purpose is

to promote and maintain a high level of public trust in appraisal practice.

The definition

of Physical Deterioration is

Depreciation

due to ordinary wear and tear. Normally curable.

Depreciation

caused by a loss of utility is

Functional Obsolescence

Example: A poor floor plan

What is

a property's highest and best use?

The use of a property

that provides the greatest financial return.

What are

the three approaches to value?

.

Cost Approach
Sales Approach
Income Appraoch

The presence

of lower priced properties in an area will cause a decline in the value of the subject property is called ______.

The principle

of Regression

The process

of combining several parcels of land into one larger tract.

Assemblage

.

What is

postponed maintenance on property that results in increased physical depreciation (wear and tear).

Deferred Maintenance

.

The final

step in the appraisal process using weighted averages to determine an estimate of value.

Reconciliation

.

What are

the five attributes of land?

.

1. unique
2. immobile
3. durable
4. finite
5. useful

What is

the difference between real estate and real property?

Real Estate

is an identified parcel of land and its improvement. Real property is the ownership, rights, and benefits in that real property.

What does

USPAP stand for?

Uniform Standards of Professional Appraisal Practice.

.

What is

the important consideration regarding special use properties?

.

Their value may be affected due to their limited purpose use.

What are

the four agents of production?

.

(1) Land (2) Labor
(3) Capital (4) Entrepreneurial Profit

The condition

of a property measured in years.

Effective Age

.

What are

the four phases that a neighborhood goes through?

They are

(1) Growth (2) Stability
(3) Decline (4) Revitalization

What is

the most complete form of ownership of a property?

Fee Simple

.

What are

the four government powers that can be imposed on a property?

.

(1) Eminent domain (2) Taxation (3) Police power (4) Escheat

What are

the rights in property or “sticks” in the bundle?

.

(1) Right to sell (2) Right to lease (3) right to occupy (4) Right to mortgage (5) Right to give away

What is

a "life estate"

.

The absolute rights to a property limited to the lifetime of the designated party.

Is the

user and payer of the appraisal report always the client?

No

The client could simply be an agent, and is just the person who is engaging the appraiser.

The

right to use another's real property for a particular use is _________.

.

An easement

Property sold

in a less than typical marketing period and exposure is what type of value?

Liquidation Value

.

What are

the four tests of highest and best use?

.

Physically Possible
Legally Permissible
Economically Feasible
Maximally Productive

_______ Land

is the portion over and above what is needed for the highest and best use and does not have a stand alone value.

Surplus Land

.

_________ Land

is land that is not necessary to support improvements. It has its own value.

Excess Land

.

The conversion

of income to value is called?

Capitalization

.