The appraisal process, also known as the valuation process, is a systematic method used to estimate the market value of a property. This process involves a detailed analysis of various factors including property condition, location, and comparable sales.
An appraisal review is a report that comments on the completeness and apparent accuracy of an appraisal report. The primary purpose of some reviews is to ensure compliance with technical rules such as USPAP; other reviews focus on validating the value estimate. The review may be presented as a narrative or a checklist.
A Broker's Opinion of Value (BOV) is an analysis provided by a real estate broker to help clients make informed decisions about the listing price or a suitable bid for a property. While similar to a comparative market analysis, it is not as in-depth as a licensed appraisal used for mortgage lending.
Consulting in real estate involves providing expert advice, information, analysis, and recommendations to aid in making informed real estate decisions.
A Counselor of Real Estate (CRE) is a professional designation granted to individuals who are recognized for their expertise, experience, and high ethical standards in the field of real estate. This designation is awarded by The Counselors of Real Estate organization, an international group of real estate professionals.
Elements of comparison are critical attributes or variables used in real estate to evaluate and contrast different properties during an appraisal or analysis process.
Gross Square Foot (GSF) refers to the total area of a building measured from the outside of the exterior walls, including all spaces such as hallways, closets, and structural components.
A hypothetical condition in real estate appraisal is an assumption made contrary to fact for the purpose of analysis. It allows valuation or analysis to occur in a different context than the actual current conditions or circumstances.
A market participant interview is a discussion conducted to elicit opinions from individuals who actively buy, sell, or rent a specific product. This process typically involves a smaller, more knowledgeable sample compared to a random sample or survey.
A market survey involves collecting primary information on neighbouring properties to assess their characteristics, rent levels, and tenant occupancy, helping stakeholders make informed decisions.
A marketability study is an analysis conducted for a specific client to determine the likely sales of a specific type of real estate product. It seeks to establish the market price and rate of sales for a particular product without considering its financial feasibility or profitability.
A Narrative Report Appraisal provides a comprehensive and detailed examination of property value using expository and descriptive paragraphs, unlike more structured formats such as forms, letters, or tables.
National Decision Systems (NDS), now known as Claritas, is a data company that provides demographic and psychographic information used for geographic segmentation and market analysis.
Simulation in real estate involves artificially replicating the behavior of a system for future analysis, enabling informed decision-making and planning based on various scenario testing.
Tenure refers to the nature of an occupant's ownership rights and indicates whether one is an owner or a tenant. It is a critical factor in real estate, providing insights into housing markets and property management.
