Virginia PL, Level 18 - Property Valuation

appraised value

an estimation of property's value as of a specific date, performed by a certified appraiser

appraiser

an individual who is trained and licensed to perform appraisals, which estimate the value of real property

appreciation

the increase in value of a property

assemblage

the combining of multiple contiguous pieces of real property into a single tract of land, often resulting in an increase in value

assessed value

the value placed on a property by a governmental unit for use in calculating property taxes

contribution

the amount of market value added to a property by an addition or improvement to the property; not necessarily the same as the cost of the improvement

demand

a measure of the general desire for an asset or commodity at a given time

market value

the price for which a property will theoretically sell under typical conditions

plottage

an increase in overall value resulting from the successful assemblage of multiple plots

substitution

an economic principle stating that the value of a good or service is affected by the cost of getting a similar (substitute) item elsewhere

taxable value

the value placed on a property by a governmental unit for use in calculating property taxes, minus any exemptions

value

the price for which a property will theoretically sell under typical conditions

buyer's market

any market that is experiencing an excess of sellers or supply, creating more favorable conditions for buyers.

equilibrium

a theoretical market condition in which levels of supply and demand are balanced

market

a theoretical construct that isolates the selling and purchasing of any one particular commodity from the economy as a whole

seller's market

a market condition in which the number of properties for sale does not meet the demand (number of people looking to buy)

supply

in real estate, the amount of properties that are vacant or are available for sale or rent

comparable (comp)

any property which has sold and is similar enough in features, location, and proximity in time to inform the value of a subject property

comparative market analysis (CMA)

a report that compares the prices of recently sold or listed homes ("comparables") in order to estimate the market value of a similar property (the "subject property") located in the same area

multiple listing service (MLS)

a database in which local member brokers share listings so that fellow member brokers can procure buyers for those properties and establish compensation for properties sold jointly

price mechanism

the manner in which a price is determined by a buyer and seller (a quantification of value) with respect to the forces of supply and demand