Yield rate of return on equity Capital

Yield rate earned for a given capital investmet over the period of ownership

Rate of capitalization used in "Ellewood" mortgage-equity appraising

Equivalent of NOI plus annual ad valorem property Taxes

Equivalent of NOI plus annual property Taxes

Annual net income remaining after deducting all operating expenses, but before deducting financial charges such as recapture or debt service (select all that apply)

A superior property loses value when located in an area of inferior properties of the same use class - Principle of ___

Requires an appraiser to measure the value of any improvement to a property by the amount it contributes to market value, not by its cost. - Principle of ___

The direct ratio reflecting the relationship between a single year's NOI expectancy and the total property price or value

1) Measures income attributable to both land and improvements, that is, to the whole property, and 2) reflects both the return on investment and the return of the investment in any wasting asset.

Yield rate of return on total capital invested

Provides for a return or recapture of the investment over the property's economic life (select all names applicable)

A rate to allow for future replacement of a wasting asset.

The concept that land should not be valued on the basis of one use while the improvements are valued on the basis of another, land and improvements should be valued on the basis of the same use.

Principle of value that states that when the amount of a property of a certain type offered for sale is large in relation to demand, prices will fall; prices will rise when the opposite situation prevails.

This principle states that no buyer will pay more for a good than he or she would have to pay to acquire an acceptable substitute of utility in an equivalent amount of time. - Principle of ____

What are the 4 Agents of Production (select all that apply)

States that as quantities of 1 productive factor or service increase, the quantities of other productive factors remaining fixed, the resulting additional increments of product or output will decrease after a certain point.

This principle entails 1) identifying the most appropriate market and next.. 2) the most profitable use within that market. The concept is commonly discussed in connection with underutilized land.

Yield rate earned for a given capital investment over the period of ownership

The minimum rent stipulated under a percentage lease

The rent est. by a lease of other agreement or contract. Used to est the fact that the actual rent designted, or contract rent, may differ from market rent.

Part of the contract rent which is in excess of the economic rent at the time of the appraisal.

portion of the total rent imputable to the underlying land; rent paid for the right to use and occupy land

The rent that a property would most probably command if offered on the open market, as indicated by current rents being paid for comparable space, as of the effective date the appraisal.

Additionl rent paid under a percentage clause in a lease that is above the guaranteed minimum rent.

Rent paid in accorance with the terms of a percentage clause in a lease, usually with a guarenteed minimum.

Income generated by the operation of the real property that is no derived directly from space rental

Reversion is handled ______ in Yield Capitalization than in Direct Capitalization