Annual Update: A change in assessed value based on new appraisal or mass appraisal methodology using current market date that occurs on an annual basis.
Calibrate: The process of estimating the coefficients of a mass appraisal model
Coefficient: Values and ratios that are multiplied by dependent variables in valuation models, e.g. $X per square foot or Y% vacancy rate
Cost Approach: The sum of the land value plus depreciated improvement value
Highest & Best Use: The most profitable use of land or a building given legal, physical, and financial limitations
Income Capitalization Approach: Convert a potential stabilized income stream into a value estimate based on it's quality, quantity, and duration. The basic formula is income / cap rate = value
Mass Appraisal: The valuation of a group of properties as of a given date, using standard procedures and statistical testing
Model: A depiction of how something works. In real estate appraisal, a model explains the relationship between value and supply/demand variables in the real estate market. It's used to predict the theoretical sale price of a property.
Physical Inspection: Our appraisers physically inspect the property and update the characteristics including square feet, quality and condition.
Sales Comparison Approach: Comparing the property being appraised with properties that have sold
Single-Property Appraisal: The valuation of a specific property as of a given date
Specify: The process of designing models based on theory and market analysis
Value Update: An annual adjustment applied to properties between inspections