REB-FC4

The practice of appraising multiple properties as of a given date by a systematic and uniform application of appraisal methods and techniques that allow for statistical review and analysis of results.

• Mass appraisal

• Individual appraisal

• Comparative appraisal

• Statistical appraisal

The forces that impact real estate values are the following:

• Social, economic, physical or environmental and governmental

• Cultural, technological, historical and financial

• Legal, personal, geographical and psychological

• Political, emotional, structural and commercial

Rights generally inherent in the ownership of real estate include are referred to as

• Bundle of rights

• Property rights

• Landlord rights

• Tenant rights

This economic principle holds that a prudent purchaser would pay no more for a home than it would cost him or her to build or buy another one.

• Principle of Substitution

• Principle of Supply and Demand

• Principle of Opportunity Cost

• Principle of Diminishing Returns

Represents the ownership interest of a lessor owning real estate that is subject to lease to others

• Leased fee estate

• Freehold estate

• Easement estate

• Life estate

Any form of lease rental arrangement in which the lessor receives a form of rental that is based on the earnings of the lessee. Percentage rent is an example.

• Turnover rent

• Fixed rent

• Market rent

• Base rent

This comparative approach considers the sales or offers of similar or substitute properties and related market data, and establishes a value estimate by processes involving comparison.

• Market Data Approach

• Cost Approach

• Income Approach

• Sales Comparison Approach

It is defined as that logical, legal, and most probable use which will yield the greatest net income to the land over a sustained period of time.

• Highest and best use

• Optimal land utilization

• Maximum property value

• Sustainable land management

This theory is based on the idea that the greater the volume of an item, the less each incremental volume should cost.

• Economies of scale

• Diminishing returns

• Marginal cost theory

• Supply and demand

These forces relate to trends in society or culture, and sometimes these forces are imagined while at other times they are based on actual facts and figures.

• Cultural

• Economic

• Political

• Social