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Real Estate Economics
FIN 351 Test 2
Terms in this set (19)
Computerized methods for analyzing data about communities using various maps and combinations or layers of maps
Critical summary features such as occupancy rates, rental rate growth, or sales rates, that characterize a real estate market.
Identification and delineation of submarkets
A data intensive, multivariate statistical approach for sophisticated determination of market segmentation.
In cost appraisal, the identification and measurement of reductions in the current market value of a property from today's reproduction cost.
an unbiased written estimate of the fair market value of a property
Arm's Length Transaction
a transaction between two parties that have no relationship with each other and who are negotiating on behalf of their own best interests. A fairly negotiated transaction and reasonably representative of market value.
properties similar to the subject property used in the sales comparison approach to calculate a single indicated value for the subject property
Elements of comparison
the relevant characteristics used to compare and adjust the sale prices of the comparable properties in the sales comparison approach
Losses of property value caused by forces or conditions beyond the borders of the property. The losses are deducted from a building's reproduction cost in the cost approach to estimating market value.
losses in value of a building relative to its reproduction cost because the building is not consistent with modern standards or with current tastes of the market
Highest and best use
The use of a property found to be (1) legally permissible, (2) physically possible, (3) financially feasible, and (4) maximally productive.
the relationship between supply and demand for a particular type of real estate in a local market at a specified point in time
Items of personal property
five sale price adjustments made to comparable property transactions prices: location, physical characteristics, economic characteristics, use, and nonrealty items
Estimation of the rate of property appreciation through statistical examination of properties that have sold twice during the sample period. Normally, the analysis is by statistical regression.
the cost to replace an inventory item in its identical form
the cost to build a new building that is exactly like an existing building in every physical detail
Rules and guidelines that must be followed by any professional conducting an appraisal
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