REA 2024

• Plottage value


  The added value inherent in the combined common ownership of two or more contiguous lots
• Replacement cost


  The cost of constructing a building that would have similar utility to the subject property
• Straight-line or age-life method


  The method of estimating accrued depreciation based on the theory that all structures have a total useful life that can be predicted
• Comparable property


  • Sold in an arm's length transaction
  • Without any form of secondary financing
  • With a conventional mortgage
  • For all cash
• Land price adjustments


  • Adding or subtracting a lump sum
  • Adding or subtracting a percentage
• Steps in the appraisal process

  1. Defining the appraisal problem

  2. Preliminary survey

  3. Analyzing the data

  4. Making the final estimate of value
• Value in exchange


  An objective kind of value that can be estimated for items and properties bought and sold in the market
• Excess rent


  Schedule rent that is higher than market rent
• Zoning


  An exercise of a government's police power
• Comparable property characteristics


  • Size of lot and building
  • Age of building and type of construction
  • Number and type of rooms
• Effective age


  The age indicated by the condition and utility of the structure
• Real estate


  Land and anything permanently attached to the land
• Local Board of Assessment Appeals

  Chaired by the Provincial/City Assessor
• Zoning can establish height restrictions on buildings, but does not necessarily prevent decline in property values within a zoning district
• Income approach to value

  Based primarily on the principle of anticipation
• Deferred maintenance lowers property values
• Rhombus


  A parallelogram whose angles are oblique and whose sides are equal
• Names for the Market Data Approach

  • Comparative-sales approach
  • Market-comparison approach
  • Sales-comparison approach
• Just compensation


  The payment required when a person is deprived of their property by competent authority for public use
• Rescission


  When both parties agree to cancel a contract
• Physical data considered by the appraiser

  • Easement
  • Public restrictions
  • Plottage
  • Utility restrictions
• Excessive deferred maintenance lowers property values
• Effective age


  The actual age adjusted for obsolescence
• Reproduction technique is not a method of appraising unimproved real property
• Accrued depreciation


  A reduction in the original cost due to a loss in utility
• Caprice value


  An estimate derived from observing completed transactions involving a large degree of amenities or other personal and unpredictable factors
• Liquidation value


  The price that a property would sell for based on a quick sale
• Principle of consistent use


  Prevents an appraiser from appraising a lot to its commercial potential and the improvements thereon for residential value
• Steps in the appraisal process

  1. Defining the appraisal problem

  2. Analyzing the data

  3. Preliminary survey

  4. Making the final estimate of value
• Excess rent


  The difference between economic rent and contract rent
• Real estate financing influence

  The prime rate banks charge on home loans
• Data collected in the appraisal process


  • General data on the region, city and neighborhood
• Private deed restrictions


  Enforced through a homeowner's association
• Adjustments


  The peso value or percentage amounts added to or subtracted from a comparable sale to indicate the value of a subject property
• Market segmentation


  The process of identifying and analyzing sub-markets of a larger market
• Linkage


  The proximity of a parcel of land to a supporting land use
• Topography


  A description of the surface features of land such as elevation or drainage
• Estoppels certificate


  A statement of material facts or conditions on which another person can rely because it cannot be deleted at a later date
• Seasonal economic trend


  Increase in retail sales "back to school" time
• Entrepreneurial profit


  Another term for developer's profit