The process of estimating the value of a property, often required for various financial, legal, and business purposes.
The Assessment Ratio is the ratio of the assessed value of a property to its market value, often used to determine property taxes. It is a vital aspect in the evaluation of real estate for taxation purposes.
An official who determines property values, generally for real estate taxes.
A computerized method for estimating the value of a property. Often used for mass appraisal purposes, such as the reassessment of a city's property tax base.
The Before-and-After Rule in eminent domain is a practice wherein the property value is appraised both before and after the taking, considering any enhancement or injury resulting from the condemnation.
The local tax paid in the UK by businesses, based on a local valuation of the property occupied by the business and the Uniform Business Rate (UBR) set by central government.
A cadastre is a comprehensive register of the real property in a jurisdiction, which includes detailed information about property boundaries, land ownership, and the value of the land and its improvements. It is commonly used to determine the amount of tax assessed on each parcel of land.
The Cap Rate, or Capitalization Rate, is a fundamental metric used in real estate to determine the rate of return on an investment property based on the income it is expected to generate.
Capitalization rate, often abbreviated as cap rate, is a rate of interest or discount rate used to convert a series of future payments into a single present value. In real estate, the rate includes annual capital recovery in addition to interest.
A Certified General Appraiser is a professional authorized to appraise any type of property under the appraiser certification laws adopted by most states in the early 1990s.
Computer-Assisted Mass Appraisal (CAMA) refers to proprietary software used to make fast valuations of one or more real properties. This software ranges from simple tools that apply a fixed percentage increase to property values, to highly sophisticated systems that utilize complex statistical techniques to compare and consider other properties.
The cost approach is a method of appraising property based on summing the reproduction cost of improvements, minus depreciation, to the market value of the site.
Council tax is a UK local government tax applied based on property valuation, replacing the community charge in 1993–94. It includes various rebates and exemptions depending on occupancy and income.
Curable Depreciation in appraisal refers to deterioration or depreciation that can be corrected at a cost less than the value that will be added.
An estimation of the financial worth of a property if it were to be sold in the present-day market, factoring in current economic conditions, comparable property sales, and general real estate trends.
Economic obsolescence in real estate refers to the loss of property value due to external factors outside the property itself. For instance, an expensive private home may lose value if an industrial plant is built nearby. This factor must be considered during the property's appraisal.
Existing Use Value (EUV) refers to the price at which a property can be sold on the open market, assuming that it can only be used for its current use and that it is vacant.
Fair Market Rent (FMR) is the estimated amount of money a given property would likely command if it were available for lease in the current open market.
A standard measurement of land, applied at the frontage of its street line. It is used for lots of generally uniform depth in downtown areas.
The term 'highest and best use' in real estate appraisal refers to the financially, legally, and physically possible use that, at the time of appraisal, is most likely to produce the greatest net return to the land or buildings over a given period.
The Income Approach is a real estate appraisal method that estimates the value of a property by its anticipated future income. This approach is particularly useful for income-generating properties such as rental buildings, commercial properties, and investment properties.
Insurable value refers to the cost of total replacement of destructible improvements to a property; it is often based on replacement cost rather than market value.
The landlord's ownership interest in a property that is under lease. The value of a leased fee interest is based on the anticipated income from rent and the reversionary property value upon lease expiration.
The value of a tenant's interest in real estate, particularly under a long-term lease at below-market rental rates.
A licensed appraiser is an individual who is qualified to perform appraisals of real property but generally has less experience and credentials compared to certified appraisers. Licensed appraisers meet certain state-specific requirements.
The Loan-to-Value Ratio (LTV) is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. It is critical in determining the risk of a loan, especially in mortgage lending.
The Market Comparison Approach, also known as the Sales Comparison Approach, is a method used in real estate appraisal to determine the value of a property by comparing it to similar properties that have recently been sold in the same area.
Marriage Value is the latent value released by the merger of two or more interests in land, often involving the union of the freehold and a long leasehold on the same property.
Net Leasable Area (NLA) refers to the portion of a commercial building that is available for lease to tenants. It excludes common areas such as lobbies, restrooms, and utility rooms.
OMV refers to the value of an asset or property in the open market, where a willing buyer and a willing seller, both knowledgeable about the item, complete a transaction without undue pressure.
The Overall Rate of Return (OAR) is a percentage relationship of net operating income (NOI) divided by the purchase price of a property. It is a metric used to assess the profitability of an investment.
A tax based on the value of property owned by a taxpayer. In the UK, council tax and business rates are charged based on the property’s value, defined by a series of value bands which depend on the region.
Reproduction cost refers to the cost required for an exact duplication of a property, whether real or personal, taking into account the original materials, design, and workmanship as of a specific date. It is distinct from replacement cost, which involves replicating the functional utility of a property rather than creating an exact copy.
Reversionary value refers to the estimated value of a property at the end of a predefined period of time, typically used in real estate and financial projections.
Severance damages represent compensation awarded to property owners when a portion of their property is condemned and taken for public use. These damages account for the depreciation in value or inconvenience caused to the remaining property.
A tax assessor is an official who determines the value of properties within a specific jurisdiction for the purpose of calculating property taxes.
