RE-160 Chapter Notes - Chapter 16: Diminishing Returns, Effective Demand
18 Dec 2020
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Utility value for a specific purpose; school // church // library // manufacturing plant. Transferability - real estate is not very transferable, only deeds. Market value most probable price in open market, no collusion in between the parties. (k bath upgrade for k value increase) Plottage (resulting from an assemblage) more value than the plots separately. Regression and progression (nice home in a bad neighborhood = regression) Market changes, assessed value can vary from market value. Anticipation - value from expectation of future benefits. Principle of anticipation the perception that value is created by the expectation of benefits to be derived in the future (utility, income, appreciation) Appraisers must analyze trends impacting future benefits to be derived from the property. Appraisers and brokers are not allowed to give estimate of value in future. Change - external forces impacting re vary constantly. External forces impacting real property vary constantly (governmental, economic, social, environmental).
