Glossary

REAL ESTATE APPRAISAL

Comparables- properties similar to the subject property that have sold recently

Cost Approach- land value plus current construction costs minus depreciation

Highest and Best Use- that use of a parcel of land which will produce the greatest current value

Income Approach- a method of valuing a property based on the monetary returns it can be expected to produce

Market Approach- a method of valuing property based on recent sales of similar properties

Market Value- the cash price that a willing buyer and a willing seller would agree upon, given reasonable exposure of the property to the marketplace, full information as to the potential uses of the property and no undue compulsion to act

Operating Expenses- expenditures necessary to maintain the production of income

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