In the field of real estate appraisal, amenities refer to the nonmonetary benefits that a property offers to its owner. These benefits can enhance the property's appeal and value without having a direct financial impact. Examples include pride in home ownership, scenic views, and accessibility to cultural or recreational activities.
Assessed valuation refers to the dollar value assigned to a property by a municipality for the purpose of assessing property taxes. The property tax is calculated based on the number of mills per dollar of assessed valuation.
A corner lot is a parcel of land that is bounded on at least two sides by the intersection of two roads. Corner lots are often considered more valuable because they offer greater visibility and ease of access.
Functional obsolescence refers to the decline in a property's value due to changes in design, style, or technology that make the property less desirable in the eyes of buyers or tenants.
General property tax is a levy on property that the owner is required to pay. The tax is based on the value of the property, including land, buildings, and other improvements on the property.
Any permanent, fixed development of land or buildings through expenditure of money or labor that more than merely replaces, repairs, or restores to original condition, and tends to increase the value of the property.
In real estate appraisal, incurable depreciation occurs when the cost to correct a defect exceeds the benefit gained from the repair, making it uneconomical to spend on the repair.
An attachment to a property insurance policy that automatically adjusts its coverage according to the construction cost index in a community.
A popular real estate mantra emphasizing the paramount importance of location in determining the value of urban real estate. While crucial, several other factors interact with location to influence property value.
Market value is the price a willing buyer would pay for property purchased from a willing seller, while actual cash value is the replacement cost of damaged or destroyed property minus depreciation and obsolescence.
The millage rate is the tax rate applied to property, where each mill represents $1 of tax assessment per $1,000 of assessed property value.
Negative equity occurs when the value of an asset falls below the outstanding balance borrowed against it, often seen in property valuations affected by economic downturns.
Open Market Value (OMV), also known as Market Value, refers to the estimated price at which an asset or property would trade in a competitive auction setting, where the conditions for a fair sale are met, and the parties involved are well-informed and willing.
An open-end lease is a leasing agreement that includes a provision for an additional payment after the leased property is returned to the lessor, to account for any fluctuations in the property's value.
Plottage value refers to the increase in the value of land that results from the assemblage of smaller plots into a single, larger ownership entity. This amalgamation often makes the land more valuable and usable for various purposes, such as commercial or residential development.
A provision in many property insurance policies that automatically distributes coverage over insured property at various locations in proportion to their value.
Sales price refers to the amount of money required to be paid or previously paid for property or a product. It is a crucial concept in business transactions, determining the financial outcome of sales activities.
A site refers to a plot of land that is prepared for or underlying a structure or development; essentially, it is the location of a property. The site is a key component in real estate and development projects, impacting various factors from zoning laws to property value.
Staging refers to the process of remodeling and interior decoration to enhance the marketability of a house preparatory to sale.
Transfer tax is a tax paid upon the passing of title to property or to a valuable interest. This tax can apply to real estate transactions and certain financial transactions.
Unearned increment refers to the increase in the value of real estate that occurs without any effort or investment from the property owner. This often results from factors such as population growth, economic development, or improvements in the surrounding area.
