Real Estate Valuation

3. The present worth stated in dollars of the future benefits arising out of the ownership of a property.
7. Short for: An agent's opinion of a property's fair market value based on comparable sales.
8. Sales with similar characteristics as the subject property. Recent selling prices of properties similarly situated in a similar market.
9. The final step in the appraisal process. Placing weight on the alternative value conclusions, to arrive at a final value decision. See RPI Form 544-1.
10. The appraised valuation of the ground, separate from any structure (improvement) that may be on the site.
14. Short for: A measure of profits in relation to capital invested.
16. The percentage of a building's space that is not rented over a given period.
17. Describes the physical age of a property based on the condition of the structure, distinct from its chronological age.

1. At resale of capital, this is the amount by which the net sale proceeds exceed the adjusted cost basis.
2. The interest earned by an investor on an investment (or by a bank on the money it has loaned). Also, called return.
4. The estimated time required to sell or lease property within a designated area at its fair market value.
5. Real estate taxes imposed on property based on its assessed value.
6. A non-invasive examination of the mechanical, electrical and plumbing systems of a dwelling, as well as the components of the structure. See RPI Form 130.
11. Short for: A ratio stating the outstanding mortgage balance as a percentage of the mortgaged property's fair market value. See RPI Form 230.
12. An individual's opinion of a property's value on a specific date. See RPI Form 200.
13. The cost of an action that is forgone in choosing to take an alternative action.
15. An efficiency analysis evaluating the power consumption of the home.
18. Short for: The price a reasonable, unpressured buyer would pay for property on the open market.