BASIC APPRAISAL PRINCIPLES II HIGH-YIELD
COST APPROACH, INCOME APPROACH, AND
SALES COMPARISON SUMMARY 2026
◉ community property.
Answer: System of ownership; each spouse has an equal interest in
property acquired during marriage: separate property is that
acquired before marriage
◉ USPAP.
Answer: current standards of the appraisal profession
◉ utility.
Answer: the ability of a product to satify a human want, need or
desire.
◉ scarcity.
Answer: the present or anticipated under supply of an item relative
to the demand for it
◉ desire.
Answer: a purchasers wish for an item to satisfy human needs
, ◉ effective purchasing power.
Answer: the ability of an individual or group to participate in a
market
◉ Market Value.
Answer: the most probable price, as of a specified date, in cash, or in
terms equivalent to cash, or in other other precisely revealed terms,
for which the specified property rights should sell after reasonable
exposure in a competitive market under all conditions requisite to a
fair sale, with the buyer and seller each acting prudently,
knowledgeably, and for self-interest, and assuming that neither is
under undue duress.
◉ investment value.
Answer: the specific value of a property to a particular investor or
class of investors based on individual investment requirements:
distinguished from market value, which is impersonal and detached.
◉ Going Concern.
Answer: All tangible and intangible assists of an established and
operating business with an indefinite life.
◉ Anticipation.
COST APPROACH, INCOME APPROACH, AND
SALES COMPARISON SUMMARY 2026
◉ community property.
Answer: System of ownership; each spouse has an equal interest in
property acquired during marriage: separate property is that
acquired before marriage
◉ USPAP.
Answer: current standards of the appraisal profession
◉ utility.
Answer: the ability of a product to satify a human want, need or
desire.
◉ scarcity.
Answer: the present or anticipated under supply of an item relative
to the demand for it
◉ desire.
Answer: a purchasers wish for an item to satisfy human needs
, ◉ effective purchasing power.
Answer: the ability of an individual or group to participate in a
market
◉ Market Value.
Answer: the most probable price, as of a specified date, in cash, or in
terms equivalent to cash, or in other other precisely revealed terms,
for which the specified property rights should sell after reasonable
exposure in a competitive market under all conditions requisite to a
fair sale, with the buyer and seller each acting prudently,
knowledgeably, and for self-interest, and assuming that neither is
under undue duress.
◉ investment value.
Answer: the specific value of a property to a particular investor or
class of investors based on individual investment requirements:
distinguished from market value, which is impersonal and detached.
◉ Going Concern.
Answer: All tangible and intangible assists of an established and
operating business with an indefinite life.
◉ Anticipation.
