Betterment refers to an improvement made to a property that enhances its value, utility, or physical condition. This term is commonly used in the context of real estate to describe upgrades or modifications that increase the overall quality of the property.
Depreciation, in real estate appraisal, refers to the reduction in a property's value due to wear and tear, age, or other factors, which impacts its overall market value.
Detrimental condition refers to environmentally negative or hazardous substances within real estate that can affect property value, safety, and habitability.
Equity represents the interest or value that an owner has in real estate over and above the liens or debts against it. It is calculated by subtracting the total liens from the market value of the property.
Situs refers to the economic attributes of location, encompassing the relationship between a property and surrounding properties, distant points of interest, and the linkages to those points. This aspect of location contributes significantly to the market value of real estate.
Unearned Increment refers to an increase in the value of real estate that occurs independent of any actions or improvements made by the property owner. This typically results from external economic or societal factors such as population growth or infrastructure development.
