Value
What is Property
Things and the rights associated with them
East to West lines are called
Base lines
Adjustments are made to the
Subject
What is a EGI
Potential gross income - vacancy and loss + Misc income
What is the economic principle associated with the cost approach?
Substitution
T or F
An appraisal in an opinion of Value
True
How many square feet in an acre
43,560
Name 4 criteria of a valid sale
Typical motivation
Time on the market
Well informed
Arm's length sale
High Risk = High Rate =
Low Value
What is replacement cost?
The cost to build the structure with the same utility using today's materials and methods.
Property Ownership that possesses the greatest degree of ownership.
Fee Simple Absolute
What type of legal description uses bearings
Mete and Bounds
When is it most appropriate to use the sales comparison approach?
When you have lots of sales
What is the formula for the income approach
I/R = V
List 3 indirect costs
Taxes, fees, interest, advertising costs
What are the 4 elements of Value?
D-Desirability
U-Utility
S-Scarcity
T-Transferability
How many acres are in a quarter of a quarter
40 Acres
Sale 1 sold 6 months ago for $50,000
Sale 2 sold today for $62,000
What is the time adjustment annually?
Monthly?
24%
2%
Band of Investments
Mortgage 1 60% at 11%
Mortgage 2 at 8%
Equity 15% at 9.4%
What is the overall rate?
10.01%
Calculate the LCM
Total sale $136,500
Estimated Land $17,500
RCN $128,310
1.078
What are the 4 external forces that affect value
Political
Economic
Physical
Social
What are the three types of legal descriptions
Government Survey
Metes and Bounds
Lot and Block
What are the units of comparison for residential property?
Square foot
Room Counts
Bedroom Counts
Dwelling Units
An apartment building has 23 units.
Fridges cost $350 and have an expected life of 13 years.
How much reserves should be allotted for each year?
$619.23
What are the 4 methods of calculating cost
Quantity Survey
Unit in Place
Square Foot
Trended Investment