NVI Technical College Information

th 1 Appraisal Institute, The Dictionary of Real Estate Appraisal, 6 th ed. (Chicago: Appraisal Institute 2010). 2 Appraisal Institute, International Financial Reporting Standards for Real Property Appraiser, IFRS Website, www.ifrs ebooks.com/index.html . 3 Appraisal Institute, The Appraisal of Real Estate, 13th ed. (Chicago: Appraisal Institute 2008). 4 This definition is taken from “ Allocation of Business Assets Into Tangible and Intangible Components: A New Lexicon, ” Journal of Real Estate Appraisal, January 2002, Volume LXX, Number 1. This terminology is to replace former phrases such as: value of the going concern. 5 Financial Publishing Company, The Real Estate Dictionary , 7 ed. 6 U.S. Treasury Regulations. 7 USPAP 2020-2021 Scope of Work: the type and extent of research and analyses in an appraisal or appraisal review assignment. 7 Signature: personalized evidence indicating authentication of the work performed by the appraiser and the acceptance of the responsibility for content, analyses and the conclusions in the report. 7 Stabilized value : A value opinion that excludes from consideration any abnormal relationship between supply and demand such as is experienced in boom periods when cost and sale price may exceed the long-term value, or during periods of depression, when cost and sale price may fall short of long-term value. It is also a value opinion that excludes from consideration any transitory condition that may cause excessive construction costs, e.g., a premium paid due to a temporary shortage of supply. Substitution: The principle of substitution states that when several similar or commensurate commodities, goods, services are available, the one with the lowest price will attract the greatest demand and widest distribution. This is the primary principle upon which the cost and sales comparison approaches are based. 3 Total Assets of a Business: Total assets of a business is defined by the Appraisal Institute as “ the tangible property (real property and personal property, including inventory and furniture, fixtures and equipment) and intangible property (cash, workforce, contracts, name, patents, copyrights, and other residual intangible assets, to include capitalized economic profit). ” Use Value: The value of a property assuming a specific use, which may or may not be the property ’ s highest and best use on the effective date of the appraisal. Use value may or may not be equal to market value but is different conceptually. 1 Valuation Service: a service pertaining to an aspect of property value, regardless of the type of service and whether it is performed by appraisers or by others. 7 Value: the monetary relationship between properties and those who buy and sell, or use those properties, expressed as an opinion of the worth of a property at a given time. 7 Workfile: data, information and documentation necessary to support the appraiser’s opi nions and conclusions and to show compliance with USPAP. 7

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