Principles of real estate II (Champions) Latest 2024 Already Passed

Principles of real estate II (Champions) Latest 2024 Already Passed Functional obsolescence Refers to the loss in desirability of the style, layout or function of an element of a property over time Sales comparison best indicator of value for existing properties highest and best use the legal use for property that gives the greatest return in money and/or amenities external obsolescence the loss in value of a property caused by factors outside the property itself principle of contribution suggests the value of a property is equal to the sum of the contributory value of each of its components. most important aspect is that cost does not equal value most important aspect of principle of contribution cost does not equal value (for example...swimming pool) principle of change forces acting on a parcel of land are always affecting the value of the land principle of anticipation the purchase price is affected by the expectation of future appeal and benefits principle of substitution the value of a commodity if influenced by the cost of acquiring a substitute or comparable item. principle of conformity value is maximized when there is a reasonable degree of homogeneity in a neighborhood principle of increasing and decreasing returns when the value added by an improvement exceeds the cost...do not over improve. principle of supply and demand when demand is high and supply is short, prices go up - and vice versa principle of regression presence of lower-priced properties in the area will cause a decline in the value of the subject property principle of progression presence of higher-priced properties in the area will cause an increase in the value of the subject property principle of competition the absence of competition will cause prices to increase in the marketplace. Increased competition will bring prices down. characteristics of value DUST; demand, utility, scarcity, transferability market value the most probable pice a property should bring in a competitive and open market under all conditions requisite to a fair sale. types of appraisal reviews desk review and field review` desk review a type of appraisal review.