Actual Age
The real age of a building.
Actual Depreciation
That depreciation occurring as a result of physical, functional, or economic forces that cause loss in value to a building.
Appraisal
An estimate or opinion of value supported by factual information as of a certain date.
Appraisal Report
A written report setting forth an appraiser's estimates of value of a subject property.
Assemblage
Putting several smaller, less valuable parcels together under one ownership to increase value of total property.
Assessed Value
Value placed on property by a public tax assessor as a basis for taxation.
Book Depreciation
An accounting concept which refers to an allowance taken to provide for recovery of invested capital.
Book Value
The initial cost of the property plus capital improvements and minus the total accrued depreciation.
Cap Rate
A term sometimes used to refer to capitalization rate.
Capital Improvements
Any permanent improvement made to real estate for the purpose of increasing the useful life of the property or increasing the property's value.
Capitalization
The process of calculating the present worth of a property on the basis of its capacity to continue to produce an income stream.
Condemnation
A common name for eminent domain, or the right of the government to take private property from an owner for public use, paying fair market value.
Corner Lot
A lot at the intersection of two streets.
Cost
Represents expenses in money,m labor, material, or sacrifices in acquiring or producing something.
Cul-De-Sac
A lot on a dead-end street.
Deferred Maintenance
Negligent care of a building.
Depth Table
A statistical table that may be used to estimate the value of the added depth of a lot.
Economic Age
Age of a building determined by its condition and usefulness.
Economic Life
The estimated period over which an improved property may be profitably used to yield a return.
Effective Age
The years or age shown by the condition and utility of a structure, rather than its actual or chronological age.
Effective Demand
The desire coupled with purchasing power.
Effective Gross Income
The anticipated income resulting from estimated potential gross income from a rental property less an allowance for vacancy and bad debts.
Eminent Domain
The right of the government to take private property from the owner for public use, and paying the market value.
Environmental Impact Report
A study of how a development will affect the ecology of it's surroundings.
Fair Market Value
The price the property would bring if freely offered on the open market with both a willing buyer and a willing seller.
Functional Utility
The combined factors of usefulness and desirability.
Key Lot
Surrounded by the back yards of other lots. It is least desirable because of the lack of privacy.
Land Projects
Net Income
Price
T-Intersection
Utility Value
Value
Variance
desire, utility, scarcity, and purchasing power.
will increase.
the market tending toward equilibrium
If commercial real estate rental prices are falling in a
market, it is likely that
the market is over-supplied
A construction boom in a market is an indication that prices
have been increasing