The value of a parcel of property is the present

QuestionAnswer An impartial estimate or opinion of value is called valuation The purpose of valuation is to determine the value of the property The present worth of all rights to current and future benefits of ownership is the _____ of the property value The price which an informed buyer and seller agree on when neither is unduly pressured and the property has been on the market for a reasonable time is called the market value The actual amount that a parcel of property sells for is the market price Best Way to remember basic elements of value is to use the word DUST The fact that someone desires a property and has the purchasing power to buy it is the basis for the element of value called demand The fact that land has a number of important uses is the basis for the element of value called utility The fact that the amount of land available affects its value is the basis for the element of value called scarcity The fact that the ability to buy and sell land affects its value is the basis for the element of value called transferability The fact that the real estate market is largely a local one reflects the fact that land is immovable The fact that real estate has a certain appeal as a permanent investment reflects the fact that land is indestructible The fact that one parcel of land is never an exact replacement for another reflects the fact that land is non-homogeneous The fact that a buyer will buy with the expectation of receiving future benefits is called the principle of anticipation An investor's expectation of receiving a financial return on a his/her investment in real property is an example of the principle of anticipation The principle that the price that a property will sell for is affected by similar properties of equal desirability is called the principle of substitution The single most important principle of value in the purchasing of real property is that of substitution The impact on value of the way a property is used is reflected in the principle of highest and best use The fact that when a substantial profit is being made in a business others will enter the same type of business represents the principle of competition The fact that the value of property is affected by the availability of property for sale, and the desire and ability of buyers to purchase is known as the principle of supply and demand A situation in which there are not enough buyers to meet the supply represents a ________ market buyer's A situation in which there are not enough sellers to meet the demand represents a ________ market seller's The fact that the cost of improving property may not produce a corresponding increase in value represents the principle of diminishing marginal returns The principle which states that the maximum value of a parcel of property is attained when the property is used in a manner that is consistent with surrounding property is known as the principle of conformity Combining two or more adjacent properties into one parcel is called assemblage The increase in value when two or more adjacent properties are combined into one parcel is called plottage A house that costs $125,000 to build is worth less in a neighborhood of $75,000 homes. This represents regression A house that costs $75,000 to build is worth more in a neighborhood of $125,000 homes. This represents progression The pricing approach based on a comparison of the subject property to similar properties is called the _______ approach sales comparison The sales comparison approach to pricing is based on an assumption of the principle of substitution Another name for the sales comparison approach is the ______ approach market data The sales comparison approach uses a comparison of the subject property and other properties called comparables The use of "comparables" is a major part of an approach to pricing called the _______ approach sales comparison In the sales comparison approach to pricing, the prices of the comparable properties are adjusted for differences from the subject property In pricing a property using the sales comparison approach, adjustments are made to the price of the _________ property comparable The last step of the sales comparison approach to pricing is reconciliation of comparables The pricing approach most appropriate for determining a price for residential property is the _______ approach sales comparison The sales comparison approach to pricing is used most often for ______ properties residential The pricing approach most appropriate for determining a price for a vacant lot is the _______ approach sales comparison The cost approach to pricing is often used when comparables are not available The most likely approach to pricing which would be used for a school or fire station is the ______ approach cost The approach to pricing based on what it costs to replace the improvements is the _______ approach cost The cost of replacing a building with a precise duplicate of the original building is the ____ cost reproduction The cost of replacing a building with one that performs the same function but is not an exact replica is the ______ cost replacement Most price determinations made using the cost approach are based on the ______ cost replacement In the cost approach, the estimated replacement cost is reduced by the depreciation In the cost approach, the price of the land is added to replacement cost Which of the following represents the price of a property using the cost approach? replacement cost - depreciation + land The approach to pricing generally regarded as yielding the upper limit for price is the _____ approach cost The method for determining the replacement cost for a building which is based on the size of the building is the _____ method square foot The method for determining the replacement cost for a building which is based on determining the total cost for all major segments of the building is called the ______ method unit in place The method for determining the replacement cost for a building which is based on determining the cost of all labor and materials by item is the _______ method quantity survey The method for determining the replacement cost for a building which is used the most often, but is the least accurate is the ______ method square foot The method for determining the replacement cost for a building which is the most accurate but the most difficult is the ______ method quantity survery Physical deterioration, functional obsolescence, and economic obsolescence are types of depreciation The wear and tear that comes from age and normal use is a type of depreciation called physical deterioration A reduction in value due to outdated features of the property itself is a type of depreciation called functional obsolescence The distinction between curable and incurable depreciation applies to physical deterioration and functional obsolescence The type of depreciation which is economically feasible to correct is called curable The type of depreciation which is NOT economically feasible to correct is called incurable Depreciation due to physical deterioration or functional obsolescence arises from forces ______ the property within Economic obsolescence arises from forces _____ the property outside The approach to pricing used primarily for income-producing properties is called the ______ approach income The income approach is used primarily for _______ properties income-producing The approach to pricing which would be the most appropriate for apartment or office buildings is the ____ approach income The approach to pricing which converts the annual income a property can be expected to produce into a price for the property is the _____ approach income The process for converting future income into a current value is known as capitalization The process of capitalization is based on _____ income net In the capitalization process, the rate of return that an investor expects is called the capitalization rate In the income approach using capitalization, the price for a property is determined by dividing the annual net income by the capitalization rate In the income approach using capitalization, the prie for a property is determined by dividing the capitalization rate into the annual net income In the income approach, as the capitalization rate increases, the price of the property decreases What is not a forma approach to pricing? Gross rent multipler

What is the value of a property called?

What is the value of the parcel of land?

What is parcel value?

What are the three ways to value a property?