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9 Cards in this Set
- Front
- Back
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The most profitable use of property one that provides the greatest net return over time |
Highest and best use |
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Integration equilibrium disintegration and rejuvenation |
Principles of change |
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Principle that states no one will pay more for a piece of property than they would have to pay for an equal desirable substitute |
Principle of substitution |
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A transaction where there is no pre-existing family or business relationship between the parties |
Arm's length transaction |
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A term that means depreciation caused by functional inadequacies or outmoded design |
Functional obsolescence |
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A term that means depreciation caused by forces outside of the property |
External obsolescence |
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The rate of return an investor wants on her investment |
Capitalization rate |
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The principle that asks does it add to the value of the property |
Principle of contribution |
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In the income approach to value are mortgage payments considered an operating expense? |
No |
