Physical life refers to the expected period of time during which a real estate improvement or structure is expected to remain physically intact and usable if proper maintenance is conducted.
Portfolio value refers to the aggregate value of a real estate portfolio, potentially exceeding the summed individual values of its constituent assets due to operational efficiencies, synergies, or collective appeal.
Principle (Appraisal) refers to basic economic facts that underpin the theory of valuation in real estate. Key principles include substitution, contribution, anticipation, and highest and best use, which assist in accurately determining a property's market value.
The principle of substitution posits that the value of a property is directly influenced by the availability and prices of comparable properties, assuming that a typical buyer finds similar properties interchangeable.
The purpose of an appraisal assignment is to clearly define the goal of the appraisal process, whether it is to estimate market value, insurance value, value in use, or some other specific value.
A Real Estate Appraiser is a professional who evaluates and estimates the value of properties. The appraiser considers many factors, including location, condition, and market trends, to provide an unbiased opinion of the property's market value. Their services are crucial for transactions such as buying, selling, refinancing, and property taxation.
Reassessment is the process of revising or updating the value estimate of property for ad valorem tax purposes. It forms the basis for determining the property taxes homeowners and businesses owe to local government entities.
REIS is a large data bank that includes historical rental rates on more than 100,000 properties. It is widely utilized by professionals in the real estate industry for market research, analysis, and forecasting.
Replacement cost refers to the expense associated with reconstructing or replicating a building to perform the same function as the original structure. This concept is pivotal in insurance and real estate investment.
Reproduction cost is the expense involved in duplicating a property exactly, denoting the total amount required to construct a replica of the structure using the same materials, design, and workmanship as the original.
In the context of real estate investment, the resale price is the projected selling price a property might fetch at the end of the projection period or investment horizon. It plays a crucial role in profitability analysis and investment decision-making.
A Residential Accredited Appraiser (RAA) is a professional designation that signifies an appraiser's commitment to advanced residential valuation education, proficiency, and industry best practices.
Revaluation or re-evaluation, also known as reassessment, is an updated appraisal process conducted to determine the current value of property for taxation and other purposes.
Reversionary value is the estimated value of a property at the end of a specific time period, often related to the expiry of a lease or a pre-determined holding period. It directly impacts investment decisions and property valuation models.
The Sales Comparison Approach is one of the three primary appraisal approaches used to estimate the market value of a property by comparing it to similar properties that have recently sold in the same area.
A Senior Residential Appraiser (SRA) is a highly skilled professional credential granted by the Appraisal Institute, certifying an appraiser’s advanced ability to value residential properties accurately and ethically.
Split-Rate Capitalization is a technique in real estate appraisal to estimate property value by using different capitalization rates for different periods, typically to account for varying degrees of risk and return over time.
Square footage is a measure of the area of a piece of real estate, typically measured in square feet. It represents the total floor area within a property's boundaries.
A method for determining just compensation for condemnation prevalent in many states, providing a detailed procedural framework for property valuation unlike the more general Before-and-After Rule.
A State-Certified Appraiser is a professional who has met the stringent requirements set by state appraisal boards, ensuring they possess the expertise to provide accurate property valuations for various purposes such as sales, mortgages, and investments.
Straight-Line Depreciation is a method that applies equal annual reductions in the book value of a property. It is primarily used in accounting for replacement and tax purposes.
In real estate appraisal, the 'subject property' refers to the property currently being appraised. Understanding its value, attributes, and market comparables is essential for accurate property valuation.
A tax assessor is a local government official responsible for determining the value of properties within a jurisdiction for taxation purposes, playing a key role in how property taxes are assessed and collected.
Taxable Value, also referred to as Assessed Value, is the dollar amount assigned to a property for the purposes of calculating property taxes. It's an estimation of a property's market value determined by the local tax assessor.
The forecast ratio of the next year's operating income to the sale price at the time the property is expected to be resold. Contrast to Going-In Cap Rate.
Terminal value represents the remaining value or expected remaining value of a property at the end of a certain period, such as an income projection period. It is an essential component in financial modeling and valuation, like Discounted Cash Flow (DCF) analysis, to determine the future worth of an asset.
The Uniform Residential Appraisal Report (URAR) is a standardized form used by appraisers to provide a comprehensive valuation of residential properties. It is required by major secondary mortgage purchasers.
The Uniform Residential Appraisal Report (URAR) is a standardized report form used by appraisers when estimating the market value of a residential property, often in conjunction with mortgage underwriting.
A unit of comparison is a critical tool used in real estate appraisal to compare properties of varying sizes and characteristics. These units ensure consistent evaluation and assist in determining a property's fair market value.
The stated application intended for the information included in the appraisal. Appraisals can serve various purposes such as condemnation, liquidation, or mortgage collateral.
Value in real estate represents the worth of all the rights arising from ownership. It quantifies the amount of one commodity that will be exchanged for another under specific conditions.
Understanding the value of a property before and after a taking is crucial in matters of eminent domain and just compensation.
Value in exchange refers to the worth of a property based on its ability to be traded for goods and services. It differs from investment value or value in use, focusing primarily on what the property can be exchanged for in the open market.
Value In Use refers to the worth of a property in a specific use, typically its current usage. It may significantly differ from its market value, reflecting its utility in the given context.
Zillow is a comprehensive real estate service that aggregates listing data on houses for sale from various local MLS (Multiple Listing Service) sources. It features these homes on its website, provides property valuations, and recommends real estate salespersons to help potential buyers tour and purchase homes. The platform also includes myriad tools such as rental listings, mortgage calculators, and market insights.
