Dollar value or percentage amounts that, when added to or subtracted from the sales price of a comparable property, provide an indication of the value of a subject property. Adjustments are necessary to compensate for variation in the features of the comparable relative to the subject.
A commentary by one appraiser on the appraisal report prepared by another appraiser, often completed to ensure accuracy and compliance with relevant standards.
An analysis conducted by a real estate broker to assist a buyer or seller with determining the listing price of a property or an appropriate bid for purchase. Also known as Comparative Market Analysis (CMA), a BOV helps in making informed real estate decisions.
Cash Equivalence refers to the market value of an item if it were to be sold for cash. In real estate, this often represents the true value of a property, which can differ from the stated selling price due to various financial arrangements.
In real estate, comparables, or COMPS, refer to properties similar to the one being sold or appraised. These properties are used to estimate the value of the subject property based on their similarities in key attributes like location, size, condition, and amenities.
The Gross Income Multiplier (GIM) is a metric used in real estate to evaluate the relative value of an income-generating property. It is calculated by dividing the property's sale price by its gross annual rental income.
A real estate valuation metric calculated by dividing the sales price of a property by its gross rental income, typically used to estimate the value of income-producing properties.
Hangout refers to the remaining balance of a loan when the term of a loan exceeds the term of the lease of the property securing the loan.
The International Valuation Standards Council (IVSC) is an independent, non-profit organization that sets global standards for the valuation profession.
Just compensation refers to full indemnity for the loss or damage sustained by the owner of property taken under the power of eminent domain. The measure generally used is the fair market value of the property at the time of taking.
An MAI Appraisal refers to a real estate appraisal conducted by a person who holds the MAI designation, granted by the Appraisal Institute, signifying a high level of experience and expertise in commercial real estate valuation.
An overimprovement occurs when a property improvement is valued significantly higher than the land it sits on, affecting its market value and efficiency. This commonly entails disproportionately expensive enhancements relative to the land’s inherent or potential value.
The Sales Comparison Approach is one of the three primary appraisal methodologies used to value property by comparing it to similar recently sold properties. It's also known as the Market Comparison Approach.
The Uniform Standards of Professional Appraisal Practice (USPAP) outlines the ethical standards and requirements for professional appraisers to ensure competency and transparency in the appraisal process.
