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Questions and Answers
Economic _____. The overall direction in which a nation's economy is moving.
Economic _____. The overall direction in which a nation's economy is moving.
trends
_____ length transaction. A sale in which there is no pre-existing family or business relationship between the parties.
_____ length transaction. A sale in which there is no pre-existing family or business relationship between the parties.
arm's
A property's economic life (also called ______ life) is the period when the land and its improvements are profitable.
A property's economic life (also called ______ life) is the period when the land and its improvements are profitable.
useful
____ = length x width.
____ = length x width.
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Loss in value due to any cause.
Loss in value due to any cause.
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___ income = gross income operating expenses.
___ income = gross income operating expenses.
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An estimate or an opinion of value.
An estimate or an opinion of value.
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Study Notes
Economic Overview
- Economic direction refers to the trend and movement of a nation's economy, indicating growth or decline.
Transaction Types
- Arms-length transaction involves a sale between parties with no prior familial or business relationship, ensuring fair market value is established.
Property Value
- Economic life or economic lifespan of a property pertains to the duration when land and its improvements generate profit.
Property Measurement
- Area of a property is calculated using the formula: length x width.
Valuation Concepts
- Depreciation indicates loss in value of property due to various causes, affecting overall worth.
Income Calculation
- Net income is calculated by subtracting operating expenses from gross income, providing a clear picture of profit.
Valuation Estimates
- An appraisal is an estimate or opinion of a property's value, essential for transactions and financing decisions.
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