(Answered) PSI Real Estate Exam - Valuation and Market Analysis

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(Answered) PSI Real Estate Exam - Valuation and Market Analysis Amenity A tangible or intangible feature that enhances and adds value to real estate. Arm's Length Transaction A transaction that occ... urred under typical conditions in the marketplace where each of the parties were acting in their own best interests. Assemblage The combining of two or more parcels of land into one larger parcel. Balance A condition that exists in the real estate market when there are slightly more homes available than buyers. Buyer's Market A situation in the housing market where buyers have a large selection of properties to choose from. Capitalization A way to convert a property's income figure into an estimated value. Competitive Market Analysis A method of determining the approximate market value of a home by comparing the subject property to other homes that have sold, are presently for sale, or did not sell in a given area. Comparables Other similar properties that have sold in a certain area. Contribution A "rule" that says a particular item or feature of a home is only worth what it actually contributes in value to that piece of property. Demand The need or desire for a specific good or service by others. Diminishing Returns Law that says beyond a certain point, the added value of an additional feature, addition, repair, etc. is less than the actual cost of the item. [Show More]

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