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Appraisal3
Appraisal
Question | Answer |
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Principal of Increasing and Decreasing Returns | Invest in property whenever each dollar invested will return a dollar or more of increased value and stop when each dollar invested returns less than a dollar in value-do not over-improve a property |
Principle of Contribution | The value of a part is determined by its contribution to the total value of the property rather than by the cose of the part |
Principle of Regression | Lower valued properties in the neighborhood lead to a decline in value of a subject property |
Principle of Progression | Higher valued properties in the neighborhood lead to an increase in value of a subject property |
Principle of competition | Increased competition results in decreased profits for current providers |
Principle of Change | Appraisers must make adjustments for changes in market conditions and time |
Principle of Anticipation | Pricing today based on the expectation of future appeal and/or benefits |
Assemblage | combining several parcels of land into one larger tract |
Plottage | The increased value resulting from the combining of several parcels of land into one larger tract |
Reconciliation | The final step in the appraisal process using weighted averages to determine an exact number |
USPAP | Uniform Standards of Professional Appraisal Practice-appraiser's rules |
Chronological Age | The actual age of a property |
Effective Age | The condition of a property measured in years |