Like this study set? Create a free account to save it.

Sign up for an account

Already have a Quizlet account? .

Create an account


Appraisal principle that holds that value can increase or decrease based on the expectation that some future event may or may not occur


Combining of two or more adjoining lots into one larger tract to increase their total value


Appraisal principle that holds that the greater the similarity among properties in an area, the better they will hold their value

Cost Approach

Process of estimating property value by adding to estimated land value the appraiser's estimate of the cost of the building new, less depreciation

Economic Life

Number of years during which an improvement will add value to the land

Functional Obsolescence

Loss of value to an improvement to real estate because of functional problem, often caused by changing tastes or poor design

Highest and Best Use

Possible use of a property that would produce the greatest net income and thereby develop the highest value; making an office building where a parking lot once stood

Market Value

Most probable price a property would bring in an arm's length transaction under normal market conditions on the open market; market price is what is actually paid

Progression, Regression

Value of properties near a better property see their values rise; the opposite is regression; a rundown property will negatively affect neighboring properties

Reproduction Cost

Construction cost at current prices of an exact duplicate of the subject property; i.e., using slate shingles on the roof instead of equally effective fiberglass shingle

Square-Foot Method

Appraisal method of estimating building cost; multiplying number of square feet in the improvement by cost per square foot of recently constructed similar properties

Supply and Demand

Interrelationship of availability of properties and desire for those properties; real estate is affected by marketplace just like most commodities

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

Voice Recording