The Appraisal Practices Board (APB) is a board within The Appraisal Foundation, established to identify and offer commentary on appraisal methods and techniques. Their guidance aims to promote clarity and consistency in appraisal practices, but adherence to their recommendations is voluntary.
An income property appraisal technique where the overall rate of earnings is derived from weighting mortgage and equity rates. It provides insights into the true capital structure of a real estate investment and determines the overall rate of return required by investors.
In real estate, 'COMPS' or 'Comparables' refer to properties similar in characteristics to the subject property that have recently sold and are used to help determine the market value of the subject property.
A method used by appraisers to estimate the reproduction cost (new) of a structure by evaluating the cost of its individual components. The unit-in-place method involves estimating the cost to produce and install components like the foundation, exterior walls, and plumbing.
