The Appraisal Date, or Effective Date of Appraisal, is the specific date on which the appraised value of a property is based. This date can impact the value derived in the context of historical price trends, market conditions, and other relevant factors.
The asking price is the price a property seller lists when trying to attract potential buyers. It is the starting point for negotiations and is typically determined based on market conditions, property value, and other factors.
An assessor is a government official responsible for determining the value of a property for the purpose of ad valorem taxation. They evaluate real estate to assign tax values based upon current market conditions.
A buyer's market is a real estate market condition characterized by a surplus of available properties leading to more power for buyers to negotiate lower prices. Often, it is the result of economic downturns, overbuilding, or local population decreases.
The Effective Date of the Appraisal, often referred to as the Appraisal Date, is the specific point in time at which the value of the property is assessed. This date is crucial for reflecting the property's market conditions and physical state at that particular time.
Environmental Obsolescence refers to a form of depreciation in property value due to external, environmental factors that negatively impact its desirability and usability.
Functional vacancy refers to the phenomenon in real estate where space remains intentionally vacant due to it being uneconomical to market or part of a broader investment strategy.
A revaluation clause, often seen in reappraisal leases, allows for periodic reassessment of a property’s value during the lease term, enabling adjustments to rent reflective of current market conditions.
A Seller’s Market refers to economic conditions where demand exceeds supply, allowing sellers to have more negotiating power and often leading to increasing prices and market activity.
Shadow inventory refers to the potential supply of homes that are kept off the market by their owners or banks, waiting for more favorable market conditions such as improved demand and higher prices.
A soft market in real estate refers to a market condition where there is an oversupply of properties, leading to decreased demand and lower prices, often creating favorable conditions for buyers.
Stabilized Value refers to the valuation of a property after it has achieved a consistent occupancy rate and stable operating expenses, reflecting its true income-generating potential under normal market conditions.
A willing buyer is a person who expresses genuine interest in purchasing a property under common market conditions, without being under undue pressure or compulsion.
