1. Involves judgment as to the similarity of the subject property with respect to many value factors such as location, size, contract rent levels, quality of construction, reputation and prestige, age, and condition. 2. The amount considered on the basis of an evaluation of available facts, to be the ―true‖ or ―real‖ worth of an item. 3. Changes in competition or in surrounding land uses like an industrial plant near a residential area; This results to loss in value of a real estate.
Select the item that corresponds the statement.
Replacement cost
Real estate
External obsolescence
Sales comparison approach
Lease fee estate
Going concern
Comparable data
Intrinsic value
Net operating income
Obsolescence
Book value
depreciation amount
cost approach
1. Involves judgment as to the similarity of the subject property with respect to many value factors such as location, size, contract rent levels, quality of construction, reputation and prestige, age, and condition.
2. The amount considered on the basis of an evaluation of available facts, to be the ―true‖ or ―real‖ worth of an item.
3. Changes in competition or in surrounding land uses like an industrial plant near a residential area; This results to loss in value of a real estate.
4. Cost estimate that envisions constructing a structure of comparable utility, employing the design and materials that are currently used in the market
5. The Valuer‘s estimate is based on the reproduction or replacement cost of the subject property or asset, less total (accrued) depreciation.
6. A loss in value due to a decrease in the usefulness of property caused by decay, changes in technology, people‘s behavioral patterns and tastes, or environmental changes.
7. Refers to the adjustments made to the costs of reproducing or replacing the asset to reflect physical deterioration and functional (technical) and economic (external) obsolescence in order to estimate the value of the asset.
8. Data generally used in a valuation analysis to develop a value estimates; comparable data relate to properties that characteristics similar to those of the property being valued (the subject property). Such data include sales prices, rents, income and expenses, and market derived capitalization and yield/discount rates.
9. Results from the subtraction of all vacancy and expenses from PGI*
10. Represents the wasting element of the asset, the balance being the residual amount.
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