California Baptist University

Anticipation Value is created by the expectation of benefits to be derived in the future Substitution the prices, rents, and rates of return of property tend to be set by the current prices, rents and rates of return for equally desire able substitute properties. Contribution 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.

Surplus Produtivity Allows us to capitalize land income into an indication of value Return ON Overall Yield or Discount Return OF Wasting Asset or Recapture Leverage The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds

Land An immovable and indestructible three-dimensional area consisting of a portion of the earth's surface, the space above and below the surface, and everything growing on or permanently affixed to it. Five Attributes of Land "PUFFS" Permanent Unique Finite Supply Functional Stationary Four Value Characteristics of Land "DUST" Demand Utility Scarcity Transferability Raw Land is in its natural state, prior to grading, construction, and subdividing. It is UNDEVELOPED,...

Hybrid or generic models are reflective of which approach to value? Cost Approach What type of model is the following formula? MV=GQ x ((PL x SIZE)+(PB x SIZE)) Simple Hybrid (Generic) Cost Model What should a reappraisal start and end with? Ratio Report A "Yes/No" indicates what type of variable? Binary variable USPAP Standard 6 covers which type of appraisal? Mass Appraisal

What is a requirement of both single-property and mass appraisal? Uses three basic approaches to value What is the first step in the mass appraisal process? definition of the problem List the three types of data that must be collected in analyzing the market. General data Specific data Comparative data

A property assessment system organizes resources to carry out the primary assessment responsibilities of _______, _________, and __________ properties, in accordance with property tax laws and regulations. discovery listing valuing Standards of practice are necessary to ensure: Appraisal accuracy Work is finished on time Staff and resources are used wisely All of the above Ratio studies are often used for oversight purposes. However, they can also be used for internal ________ _...

Monitoring activities (Quality assurance) 1. Reviews of progress and performance contribute to effective and efficient operations 2. Procedures in place for monitoring the quality of assessment, editing data, reviewing appraisals, and reporting time and productivity Management from the past One of the first management theories was the classical theory of management. This ws promarily an authoritarian approach, with "top-down" decision making

What are the five recognized appraisal designations offered by the IAAO that represent the highest level of achievement in the field? CAE AAS CMS PPS RES Short of a general revaluation of all property, __________________________________________________________ and ____________________________________________________ produce the single most impressive dollar return for time and money committed. systematic audit programs energetic personal property discovery efforts The theory t...

Tax Rate (def.) Percent of assessed value at which each property is taxed in a given district. Tax Rate (formula) Tax revenue (amount) / Assessed value Property Tax (formula) Subject assessed value / Tax rate Budget Revenue (formula) Total budget - Other taxes Effective Tax Rate (def.) Reflects the relationship between total property taxes on real property and the property's market value. Effective Tax Rate (formula) Assessment ratio (level) X Tax rate Jurisdictions tax rate...

The Economic Principle of Anticipation states that value is created by the expectation of benefits to be derived in the future. Chattel A mortgage on personal property. Balloon payment A payment on the balance due of a note at the end of the loan term that is in excess of the regular payment amounts. Usually found in a partially amoritized mortgage. Conventional mortgage A loan that is neither insured nor guaranteed by the federal government. Contract rent The actual rent paid ...