Which of the following are stages of a real property’s life cycle quizlet?

Which of the following are stages of a real property’s life cycle?

The life cycle of property consists of three phases: “Acquisition,” “In-Service,” and “Excess.”

What is the commonality of demand utility scarcity and transferability?

What is the commonality of demand, utility, scarcity, and transferability? … Demand is greater than supply. When using the cost approach, improvements and land are valued: separately, by more than one approach.

What is the preferred method of estimating site value for residential properties?

4.3 The Sales Comparison Approach

The sales comparison approach estimates the value of a subject property by statistically analyzing the sale prices of similar properties. This approach is usually the preferred approach for estimating values for residential and other property types with adequate sales.

Which is not one of the steps in the appraisal process?

Which is not one of the steps in the appraisal process? Determining the stage of the neighborhood life cycle.

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What are the four life cycle changes of a neighborhood?

Similarly, neighborhoods also experience a life cycle. These cycles include four basic phases: growth, stability, decline and renewal. Occasionally these four stages can happen over a relatively brief period of time, but it usually takes decades.

What is the equipment life cycle?

The equipment lifecycle consists of four phases: planning, procurement/acquisition, operation/maintenance and disposal. Each equipment lifecycle phase is critical in supporting the longevity and performance of an asset. … Operation/Maintenance – This next stage is, ideally, the longest stage of the equipment lifecycle.

What are the four essential elements of value?

The Four Essential Elements of Value are:

  • Scarcity: How much is there of it?
  • Transferability: Can it be sold?
  • Utility: Can it be used?
  • Demand: Does anybody want it?

How are real estate salespeople paid quizlet?

agents get paid only if they sell the property. No fee is earned if the owner alone sells the property. … No fee is earned if the owner alone sells the property. You just studied 43 terms!

What is most accurate regarding valuation processes?

An estimate of a property’s value by an appraiser who is usually presumed to be expert in his work. A valuation placed upon property by a public officer or a board, as a basis for taxation. … This method works best when the improvements are relatively new and estimates of depreciation are thus more likely to be accurate.

What determines the effective age of a property?

Effective age is the age of a property based upon its condition, not its actual age. If an appraiser examines a building that is 25 years old, but because of superior upkeep has the condition of an 11-year-old building, the appraiser may use the 11-year-old age as the effective age of the property.

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Which of the following is used when analyzing the highest and best use of a property?

The four tests of highest and best use are: (1) legally permissible (2) physically possible (3) financially feasible and (4) most profitable. The first two tests are interchangeable in order and, in many circumstances, the last two are combined.