IAAO 102 MASS APPRAISAL MODELING MARKET ANALYSIS AND PROPERTY CLASSIFICATION FINAL PAPER

IAAO 102 MASS APPRAISAL MODELING
MARKET ANALYSIS AND PROPERTY
CLASSIFICATION FINAL PAPER

●● Anticipation
Answer: Principle where value is created by the expectation of benefits
to be derived in the future.


●● Change
Answer: Principle where investor's expectations of changes in income
levels, the expenses required to ensure income, and probable increases
or decreases in property that must be addressed and forecast.


●● Competition
Answer: Principle that means that an excess of one type of facility will
decrease the value of all such facilities.


●● Subsitition
Answer: Principle where the prices, rents, and rates of return of property
tend to be set by current prices, rents, and rates of return for equally
desirable substitute properties. It is market oriented and provides the
basis for estimating rents and expenses and selecting the proper discount
rate or capitalization rate.

, ●● Balance
Answer: A suitable balance among types and locations of income
producing properties affects value; an imbalance in use may result in
declining value


●● Contribution
Answer: The value of a component of real estate can be measured by the
amount it contributes to net operating income because net operating
income can be capitalized into value.


●● Supply
Answer: The amount of product that producers are willing to sell under
various conditions during a given period


●● Demand
Answer: The amount of product a buyer is willing and able to buy
during some period, given the choices available to them.


●● Market Value
Answer: Most probable price a property should bring in a competitive
and open market


●● Investment Value
Answer: Worth of an investment property to an investor