Welcome to Carolina Home Valuations, LLC
Doing what we love to do, because VALUE MATTERS
Providing information and numbers you can understand and trust
We appraise homes and provide certified home measuring services for residential homes, small residential income dwellings as well as vacant property in all of Mecklenburg County, and portions of York and Gaston County markets.
We strive to use the latest technology in our industry, as well as the most current and accurate appraisal tools for property appraisals to improve our report quality, a benefit for you and other potential readers of the report. We measure homes with Disto laser measuring devices and draw our home sketches on-site for complete, accurate to 1/8 of an inch; defensible and dependable results, every time.
Anyone can order an appraisal on their own home for any reason, from a Certified or Licensed Appraiser
Realtors can order measurement services, with their client’s consent, to help properly list the property at a price that is close to market value (to help it sell faster!). BTW, the home, if measured without an appraisal, is treated with the same care and accuracy as an appraisal is.
When we write a report, we avoid unnecessary interruptions. Your accurate home appraisal or measurement report is our primary priority so we can deliver it on, or ahead of your schedule. We know just how important this is to you, so we go above and beyond to incorporate the data and details you need to keep a lender or underwriter from kicking a report back with questions or updates. Whenever possible, we spot trends early on for underwriting requirements and add them to our work flow pro-actively, before they are required or mandated.
You should always have a local, qualified professional answer your appraisal/value related questions for any specific property. Do not make decisions about real estate based on information from a non-Certified or non-Licensed person.
When you have the sketch of the home, provided by us, and the accurate data to back up what you represent to be the accurate and defensible size of the home you're listing, your CMA and your guidance to your seller for pricing are much stronger.
For listing your home, property tax appeals, divorce, estate planning, bankruptcy, consultation and just about any other non-mortgage need. 24-48 hour turnaround time after our physical inspection. Money-Back Guarantee
As a Certified Residential Appraiser, Devon can handle all of your Conventional and FHA appraisal needs. We work with Direct Lenders and AMC’s. Our rates are competitive and our turn-time is quick and efficient. Need a rush? Just let me know and I can accommodate.
Nita and I will come to the property you would like measured, applying all the same skill and experience you’d get with a full appraisal without the higher cost. We provide you and/or the homeowner with a professional sketch of the home, an interior layout of the rooms for you to use in your marketing and we do it all at the homeowner’s convenience. You can be assured of our professionalism and our results.
Receive a North or South Carolina Certified Appraisal to assist in determining a listing price for your home.
Receive a Certified Appraisal for FNMA, FHLMC, Conventional and FHA Mortgage purposes, typically ordered by your Lender.
Carolina Home Valuations & Measurement Specialists
Please reach us at Devon@CarolinaHomeValuations.com for appraisal or home measuring services if you cannot find an answer to your questions
Due to Covid and the changes many have made in their homes over the past couple of years, including major remodels, and the inaccurate valuations on public records, these are just a couple of factors that can affect a property's value — and a buyer's interest in it. Let Devon and Nita give you an accurate evaluation of property dimensions to determine a fair, unbiased value when buying a property, marketing a property to potential clients, or minimizing your property taxes.
A home measurement service is just what it sounds like: Based on what you need, an appraiser will measure your property's dimensions and area, then draw a basic or highly detailed layout. The report and floor-plan is a form that can be used to prove a precise Gross Living Area (GLA), the total livable space, of your home. These services are useful and often necessary when challenging property taxes or selling a property.
During a measurement or floorplan service, a certified specialist takes measurements of your home with a measuring tool — either a tape measure or laser measuring device. As they move around the property, they mark the layout of the rooms and other features, like closets, hallways, and pantries. Then, the appraiser designs a detailed sketch showing the total living area and the general layout of the house. The result is a document that can be used to prove certain details about your property — like the Gross Living Area (GLA) — on tax documentation, home listings, and more.
Property tax records often reflect inaccurate square footage because the values can come from many sources, and sometimes go unverified — meaning you may be paying for more square footage than you actually have! Unless an appraiser has executed a recent evaluation or measurement service on your property (after any updating that might have affected square footage), you'll need one to perform a home measurement service before challenging your taxes. An appraiser determines the accurate Gross Living Area (GLA) of your property so your taxes reflect the actual square footage — and you can stop overpaying.
A measurement service will assist in ensuring that you're paid fair market value for your home, as square footage is one of the biggest elements potential buyers consider when purchasing a house — But, since square footage values are frequently approximated rather than accurately measured, your home listing might reflect less Gross Living Area (GLA) than it can take credit for. An inaccurate GLA not only decreases the potential selling price for your home, but possibly even the amount of interested buyers. The only reliable method of using an accurate GLA when listing your home or property is to refer to a previous appraisal or home measurement service performed by a certified appraiser (after any updating that may have affected square footage).
To make sure that your client's property sells at a price that appropriately reflects true market value, we recommend asking for a measurement of the property. Clients, and potential buyers, will appreciate your attentiveness, and you can be assured that the GLA on your client's listing is a true representation of their home. A measurement can also be an excellent marketing tool to entice potential buyers because they can view the layout and features of the home before and after a showing. Contact Carolina Home Valuations & Measurement Specialists to find out more about our home measurement and floor plan services. Feel free to call Devon at 941-889-9393 anytime
A comprehensive report showing the appraiser's opinion of value is important to back the methods the appraiser used to come to his conclusions
Please reach us at Devon@CarolinaHomeValuations.com for appraisal questions or if you have questions concerning square footage. We’re happy to help
Most localities determine your property tax burden based on an ad valorem assessment of the property's value. If you get an unwanted surprise in the mail stating your taxes are going up, you may have good reason to differ with their assessment. Sometimes, matters like this can be solved with a phone call. However, if after discussing your assessment with your local taxing authority you still feel your property was overvalued, an independent, third-party appraiser is often your best bet in proving your case.
There are as many different procedures for appealing assessments as there are property taxing districts, so it's important to enlist the help of a professional appraisal firm that's experienced and trained in the ins and outs of your particular jurisdiction.
Please note: It makes sense to do your own research before determining whether to go forward with a property assessment appeal, especially before you make the decision to hire a professional appraiser. However, according to the Uniform Standards of Professional Appraisal Practice (USPAP), we are not allowed to take "shortcuts" -- i.e., your research -- and use it on its face as part of our independent evaluation. When you hire us for an assessment appeal, you're commissioning an independent, third-party professional appraisal report. As such we do our own evaluation, beginning to end. If you're right that your property has been overvalued, an independent report such as ours will be even more persuasive than any other evidence you can marshal on your own. But it depends on our ability to do the work independently.
Sometimes, you will have a hearing on your assessment appeal and will need for Devon to testify on your behalf. Be assured that Carolina Home Valuations are able to professionally and persuasively testify at appeal hearings. You can call us, 941-889-9393, any time to find out more about our qualifications, expertise and services offered.
The responsibility of settling an estate, often a source of stress is very important. As an executor you have been entrusted to carry out the wishes of the deceased as quickly and with as much dignity as possible. You can count on us to act quickly and with as much sympathy to the feelings of everyone involved.
We've made a name for ourselves in supplying the best appraisals that lawyers and accountants have come to rely on. Often, the parties involved will have different expectations of how the appraisal process should work; however, our knowledge of the estate process will undoubtedly satisfy all parties involved. In relation to our familiarity in working with the legal system and various agencies, we provide appraisals that always outdo all expectations.
Settling an estate usually depends on an appraisal to determine fair market value for the property therein. We empathize that when you lose a loved one, ordering an appraisal is the furthest thought from your mind. Due to this, it is possible that the time of death differs from the time the appraisal is needed, requiring a retrospective appraisal. We do our best to assure that you are comfortable with the procedures and requirements requested by revenue services to perform a retroactive appraisal with an effective date and fair market value estimate matching the exact date your loved one passed away. The ethics provision stated within the Uniform Standards of Professional Appraisal Practice (USPAP) binds our staff to confidentiality, guaranteeing the highest degree of discretion for all parties involved.
All too often, people do not fully understand the need to have a comprehensive real estate appraisal prepared in support of the numbers displayed in general documents filed with the IRS.
One of the most necessary requirements in a report is an appraiser-supported opinion of value in an exhaustive explanation as to how the appraiser came to his conclusion. In having a report backed by Devon as a certified, professional appraiser, you will have the knowledge that the numbers displayed in the report will certainly demonstrate to the Florida agencies that the numbers used are well founded and substantiated.
Devon guarantees a well-founded appraisal, which will provide an executor clear facts and numbers that will exceed IRS and revenue agency requirements. There's no need to worry when getting an appraisal from Carolina Home Valuations, LLC because we will stand by it no matter what.
You may have a very skillful and qualified agent, but it's in your best interest to have an objective third-party's opinion of your home's value to finalizing a listing agreement. Let Devon and Nita help. We can provide you with a pre-listing appraisal that will let you and your Realtor have a definitive description of your home's characteristics and a detailed breakdown of the most recent and similar comparable sales or as they're commonly called, "comps". Throughout our website we speak of the new ANSI Standards. These standards are mandatory and can affect the marketing, value and ultimately the sales price of your home. All Conventional, FHA and VA lenders require accurate, certified measurements with the appraiser attesting to the following of ANSI standards, when making a mortgage decision on your home sale.
Not sure if you need a full appraisal but still need some information about the real estate market in your area? You might feel like you don't need an "appraisal" but you need some help collecting local property and sales data. We can help solve your real estate dilemmas with services especially tailored for clients with your real estate needs.
This is a little bit of what you can expect when you place an order for an appraisal from us....
Sometimes homeowners choose to sell their homes FSBO (For Sale By Owner) and forego the help of a real estate agent. Selling your home by this method can end up saving you a potential “hefty” commission (industry average is 4-6% of the home’s selling price). Plus many FSBO sellers feel that they have more control in the process of selling their home since they’re in essence making all the rules.
If you're going to do it right, quickly and to get the most you can, what you need is a professional appraisal. It can be very difficult to get objective opinions, it can be very hard to take an objective look at own home because of your emotional attachment to it. We will inform you of what you need to know, not just what you want to hear.
In addition to helping you set a sensible selling price so your home will attract buyers, a professional appraisal can:
Folks are sometimes surprised to discover the value of their home is more than they originally believed. So by taking the first step and spending a little on a professional appraisal allowed them to receive thousands more than they could have gotten originally. Alternatively, some people have an inflated assessment of the value of their home, by getting an appraisal it gave then the assistance they needed in order to realistically price their home allowing them to quickly sell it instead of waiting on the market for months. An overpriced home will not attract buyers, reducing your offers, making closing more difficult, wasting valuable time, money, and efforts.
According to the National Association of Realtors, between 84-99% of all homebuyers now use the Internet to search for homes so if your house isn’t on the Internet, it should be. If you are thinking about selling your home without the assistance of a Realtor, call us to order an appraisal or home measurement. This can serve you well, as all the tools you have access to will help.
To help the appraisal go as smoothly as possible we generally recommend you take the following actions and prepare the listed documents, if available, for the appraiser.
Checklist:
Documents:
Did you hear a real estate professional use a term and you came here to figure out what it meant? We don't mean to speak a foreign language, but any profession has its jargon. What res ipsa loquitur is to a lawyer and triple witching is to day traders, external obsolescence is to appraisers. On this page, we'll give some examples of common appraiser jargon and their meanings. .
Abatement – an official reduction or invalidation of an assessed valuation after the initial assessment for ad valorem taxation has been completed; the termination of a nuisance; a reduction in rent levels that a landlord charges a tenant, sometimes brought about by a rent control program.
Absorption Rate - the rate at which properties for sale or lease have been or are expected to be successfully marketed sold or leased or given area over duration of time. See also capture rate.
Access Rights - the right of ingress to and egress from a property that abuts an existing street or highway; an easement in the street that adjoins abutting property; a private right, as distinguished from a public right. See landlocked parcel the right of a riparian owner to pass to and from the waters on which the premises border.
Administrator - a person appointed by the court to manage and settle the estate of a deceased person; a representation of limited authority who collects the assets of an estate, pays its debts, and distributes the residue to those entitled. An administrator provides security for the due administration of the estate by entering into a bond with sureties called an administration bond. See executor.
Adverse Possession - the actual exclusive, open, notorious, hostile and continuous possession and occupation of the real property under an evident claim of right or title. The time required to obtain legal title by adverse possession varies from state to state.
Allocation - a method of estimating land value in which sales of improved properties are analyzed to establish a typical ration of land value to total to the property being appraised or the comparable sale being analyzed.
Amortization - the process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principal; a program of periodic contributions to a shrinking fund or debt retirement fund.
Anticipation - the perception that value is created by the expectation of benefits to be derived in the future.
Appraisal – the act or process of developing an opinion of value; an opinion of value.
Appraisal Consulting - the act or process of developing an analysis, recommendation, or opinion to solve a problem, where an opinion of value is a component of the analysis leading to the assignment results.
Appraisal Management Company (AMC) - a private firm that serves as a conduit between the intended user of an appraisal or appraisals, and the parties conducting appraisals for a fee.
Appraisal Practice - valuation services performed by an individual acting as an appraiser, including but not limited to appraisal, appraisal review, or appraisal consulting.
Appraiser - one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.
Appraisal Report - the written or oral communication of an appraisal.
Assemblage - the combining of two or more parcels, usually but not necessarily contiguous, into one ownership or use; the process that may create plottage; the combining of separate properties into units, sets or groups, i.e., integration or combination under unified ownership.
Assignment - a written transfer of the rights of use and occupancy of a property to be held by another legal entity or to be used for the benefit of creditors, e.g., assignments of mortgages, sales contracts, and leases.
Capital Recapture - the return of an investment as distinguished from the return on an investment. Invested capital may or may be recaptured all or in part through liquidation of the property at the termination of the investment. See capital recovery.
Capital Recovery - the return to investors of that portion of their property investment expected to be lost over the income projection period. Capital recovery may be viewed in either a physical sense, as reflected in the traditional physical techniques of capitalization, or in a financial sense as reflected in mortgage-equity analysis. Capital recovery is not interchangeable with the term depreciation. See also capital recapture.
Capture Rate - The estimated percentage of the total potential market for a specific type of property (e.g., office space, retail space, single-family homes) that is currently absorbed by existing facilities or is forecast to be absorbed by proposed facilities. For example, the capture rate of a retail center depends on the size of its trade area, the anchor tenants in the facility, competition within the trade area, and the relative position of the subject facility compared to the competition. Short-term capture is referred to as absorption; long-term capture is referred to as share of the market.
Caveat Emptor - "let the buyer beware"; a maxim of the common law stating that the buyer purchases at his or her own risk.
Comparables - a term, also known as comps, for similar property sales, rentals, or operating expenses used for comparison in the valuation process. In best usage the thing being compared should be specified, e.g.
Compulsory Acquisition/Purchase - In accordance with statutory procedures and practices, the government’s taking of private property for public use upon the payment of compensation as provided for by statute. The term compulsory acquisition/purchase is Commonwealth usage. The terms condemnation and damages are used in North America.
Condemnation - The act or process of enforcing the right of eminent domain. See also eminent domain. See also Compulsory Acquisition/Purchase and Condemnation in the IVS Glossary in the Addenda.
As defined in the IVS Glossary – The act or process of enforcing the right of eminent domain. In condemnation, the loss in value to the remainder, resulting from a partial taking, is known as damages. The terms condemnation and damages are North American usage.
Condominium - A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas; A multiunit structure or a unit within such a structure, with a condominium form of ownership.
Contributory Value - also referred to deprival value, the change in the value of a property as a whole, whether positive or negative, resulting from the addition or deletion of a property component.
Cost Approach - a set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure including an entrepreneurial incentive, deducting depreciation from the total cost, and adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.
Cost to Cure - the cost to restore an item of deferred maintenance to new or reasonably new condition.
Cul-de-sac - a street with one open end and an enlarged turnaround at the closed end.
Curable Functional Obsolescence - an element of depreciation; a curable defect caused by a flaw in the structure, materials, or design, which can be practically and economically corrected.
Depreciation - In appraising is a loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date; In accounting, an allowance made against the loss in value of an asset for a defined purpose and computed using a specified method.
Deed in Lieu - A deed given by an owner or debtor in lieu of foreclosure by the lender or mortgage. See also foreclosure.
Discount Rate - a yield rate used to convert future payments or receipts into present value; usually considered to be a synonym for yield rate.
Easement - the right to use another’s land for a stated purpose. As defined in the IVS Glossary – Nonpossessory (incorporeal) interest in landed property conveying use, but not ownership, of a portion of that property.
Economic age-life method - a method of estimating depreciation in which the ratio between the effective age of a building and its total economic life is applied to the current cost of the improvements to obtain a lump-sum deduction; also known as the age-life method. See also modified economic age-life method.
Effective Age - the age of the property that is based on the amount of deterioration and obsolescence it has sustained, which may be different from its chronological age.
Effective Date - the date on which the analyses, opinions, and advice in an appraisal, review, or consulting service apply. In the case of a lease, it’s the date upon which the lease goes into effect.
Effective Gross Income (EGI) - the anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses and an addition is made for any other income.
Eminent Domain - the right of government to take private property for public use upon payment of just compensation. The fifth amendment of the U.S. Constitution (taking Clause) guarantees payment of just compensation upon appropriation of private property.
Encroachment - the trespassing on the domain of another. 2. Encroachment is the partial or gradual displacement of an existing use by another use, for example, moving a commercial to a residential district.
Encumbrance - any claim or liability that affects or limits the title to property. An encumbrance can affect the title such as a mortgage or other lien, or it can affect the physical condition of the property such as an easement. An encumbrance cannot prevent the transfer of possession, but it does remain after the transfer.
Entrepreneurial Profit - a market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneurs compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement.
Escheat - the right of government that gives the state titular ownership of property when its owner dies without a will or any ascertainable heirs.
Escrow - the property or evidence of property (E.g. money, securities, instruments) deposited by two or more person with a third person to be delivered under a certain contingency or on the completion of specified terms. An escrow account is generally held to cover taxes and insurance.
Estate - a right or interest in property. Defines an owners degree, quantity, nature and extent of interest in real property. There are many different types of estates, including freehold (Fee simple, determinable fee, and life estate).
Excess land - land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use pf the improved parcel. Excess land may have the potential to be sold separately and is valued separately. See also surplus land.
Executor - an individual or other legal person designated in a will to settle the estate of a deceased person. See also administrator.
Exposure Time - the time a property remains on the market. 2. Exposure time is the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market.
External Obsolescence - an element of depreciation; a diminution in value caused by negative externalities and generally incurable on the part of the owner, landlord, or tenant.
Extraction - a method of estimating land value in which the depreciated cost of the improvements on the property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land. 2. A method of deriving capitalization rates from property sale price and net operating income are known.
Fair Market Value - a term that is, in concept, similar to market value in general usage; used mainly in condemnation, litigation, income tax, and property tax situations. When an appraisal assignment involves developing an opinion of fair market value, the appropriate requisite and precise definition of the term depends on the use of the appraisal and the applicable jurisdiction.
Fannie Mae - Federal National Mortgage Association (FMNA). A government sponsored enterprise (GSE) created by Congress in 1938 that purchases mortgages from banks, trust companies, mortgages companies, savings and loan associations, and insurance companies to help distribute funds for home mortgages.
Federal housing administration (FHA) Mortgage - Federal housing administration mortgage made in conformity with the requirements of the national housing act and insured by the federal housing administration.
Fee Simple Estate - the absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.
FEMA Map - a Flood zone map created by the Federal Emergency Management Agency
(FEMA) sometimes called a FIRM or Flood Insurance Rate Map.
Field Review - an appraisal review for which the scope of appraisal work includes inspection of the exterior and sometimes interior of the subject property and possibly inspection of the comparable properties to confirm the data provided in the report. a field review is generally performed using a customized checklist that covers the items examined in a desk review and may also include confirmation of market data, research to gather additional data, and verification of the software used in preparing the report.
Final Reconciliation - the last phase in the development of a value opinion in which two or more value indications derived from market data are resolved into a final value opinion, which may be either a final range of value or a single point estimate.
Forecasting - in appraising, forecasting is to estimate or to indicate in advance. Forecasts made by appraisers are based on past trends and the perceptions of market participants concerning their continuation or alteration.
Foreclosure - The legal process in which a mortgage forces the sale of a property to recover all or part of a loan on which the mortgage has defaulted.
Freddie Mac - Federal Home Loa Mortgage Corporation (FHLMC). A Government-sponsored enterprise (GSE) created by congressional charter in 1970 that buys residential mortgages and funds them in the capital markets in one of two ways: using mortgage backed securities or a variety of debt instruments.
Functional Obsolescence - the impairment of functional capacity of a property according to the market tastes and standards.
Functionality Utility - the ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building uses in terms of architectural style, design and layout, traffic patterns and size and type of rooms.
Grantee - a person to whom property is transferred by deed or to whom property rights are granted by a trust instrument or other document.
Grantor - a person who transfers property by deed or grants property rights through a trust instrument or other document.
Gross Rent Multiplier - the relationship or ratio between the sale price or value of a property and its periodic gross rental income.
Highest and Best Use - the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must be meet are legal permissibility, physical and possibility, financial feasibility, and maximum productivity. alternatively, the probable use of land or improved property – specific with respect to the user and timing of the use – that is adequately supported and results in the highest present value.
Hypothetical Condition - that which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the property subject property.
Income Capitalization Approach - a set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in one of two ways.
Ingress - a means of entering; an entrance.
Interim Use - the temporary use to which a site or improved property is put until it is ready to be put to its future highest and best use.
Joint Tenancy - the concurrent ownership by two or more persons with the right of survivorship.
Leased Fee Interest - a freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship.
Leasehold Interest - the tenant’s possessory interest created by a lease.
Legally Nonconforming Use - A use that was lawfully established and maintained, but no longer conforms to the use regulations of the current zoning in the zone where it is located; also known as a grandfathered us. See also special use permit; variance.
Lessee - the one who has the right to occupancy and use of the property of another for a period of time according to a lease agreement.
Lessor - the one who conveys the rights of occupancy and use to others under a lease agreement.
Marketing Time - an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal.
Market Value - the most widely accepted components of market value are incorporated in the following definition: the most probable price that the specified property interest should sell for in a competitive market after a reasonable exposure time, as of a specified date, in cash or in terms of equivalent to cash, under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, for self interest, and assuming that neither is under duress.
Market Value - as defined by the uniform standard of professional Appraisal practice (USPAP)-a type of value, stated as an opinion that presumes the transfer of a property as of a certain date, under specific conditions, set forth in the definition of the term identified by the appraiser as applicable in an appraisal. (USPAP, 2010-2011 ed.)
Mass Appraisal - the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing. (USPAP, 2010-2011 ed.) Often associated with real estate tax assessment valuation.
Modified Economic Age-Life Method - A method of estimating depreciation in which the ratio between the effective age of a building and its total economic life is applied to the current cost of the improvements after the costs to cure curable physical and functional items are deducted. See also economic age-life method.
Neighborhood - a group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises. It is also a developed residential super pad within a master planned community usually having a distinguishing name and entrance.
Obsolescence - one cause of depreciations; an impairment of desirability and usefulness caused by new inventions, changes in design, improved processes for production, or external factors that make a property less desirable and valuable for a continued use; may either functional or external.
Overimprovement - an improvement that does not represent the most profitable use for the site on which it is placed because it is too large or costly and cannot develop the highest possible land value; may be temporary or permanent. Can be considered a super-adequacy and measured accordingly in estimating depreciation.
Oversupply - an excess of supply over demand; indicated by high vacancy rates, sluggish absorption rates, and declining rents.
Paired Data Analysis - a quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties to apply this technique, sales or rental data on nearly identical properties is analyzed to isolate and estimate a single characteristic’s effect on value or rent. Often referred to as paired sales analysis.
Physical Life - the total period a building lasts or is expected to last as opposed to its economic life.
Potential Gross Income (PGI) - the total income attributable to real property at full occupancy before vacancy and operating expenses are deducted.
Professional Property Valuer - a person who possesses necessary qualifications, ability, and experience to estimate property value for a diversity of purposes including transactions involving transfers of property ownership, property considered as collateral to secure loans and mortgages, property subject to litigation or pending settlement on taxes, and property treated as fixed assets in financial reporting. A Professional Property Valuer may also possess the specific expertise to perform valuations of other categories of property, i.e., personal property, businesses, and financial interests.
Riparian Rights - the right of the owner of land bordering a non-navigable lake or stream to the use and enjoyment of the water that flows across their land or is contiguous to it. Under the riparian rights doctrine, all owners of land underlying or abutting the water have equal rights to it. In comparison, the prior appropriation doctrine would not confer equal rights to all owners of land underlying or abutting the water.
Sales Comparison Approach - the process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised, identifying appropriate units of comparison, and making qualitative comparisons with or quantitative adjustments to the sale prices of the comparable properties based on relevant, market-derived elements of comparison.
Short Sale - a sale of real property in which the proceeds from the sale fall short of the balance owed on a loan secured by the property. Lenders may agree to a short sale to avoid lengthy and costly foreclosure proceedings, and borrowers who cannot meet their mortgage obligations may agree to a short sale to satisfy their debt. See also deed in lieu; foreclosure.
Special Use Permit - Permission granted by a local zoning agency that authorizes a use as a special exception to the applicable zoning. A special use permit in a residentially zoned area might allow for construction of a church or hospital. Such uses are considered conditional uses, only permitted upon the approval of the zoning authority. Sometimes referred to as a conditional use permit.
Surplus Land - land that is not currently needed to support the existing improvement but cannot be separated from the property and sold off. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel.
Swale - a shallow depression, in a flat area of land, that may be artificial and used in a storm water drainage system.
Tenancy by the Entirety - an estate held by a husband and wife in which neither has a disposable interest in the property during the lifetime of the other, except through joint action.
Underimprovement - an improvement that is inadequate to maximize the return to the site, usually a structure that is of a lower quality or size than typical of competitive properties, or one designed for a use of lower intensity.
Valuation Process - a systematic procedure used in the valuation of real property.
Value in Use - the value of a property assuming a specific use, which may or may not be the property’s highest and best use on the effective date of the appraisal. Value in use may or may not be equal to market value but is different conceptual.
Zoning - a public regulation of the use of private land through application of police power; accomplished by establishing districts or areas with uniform requirements relating to lot coverage, setbacks, type of improvement, permitted activities, signage, structure height, minimum lot area, density, landscaping, and other aspects of land use and development. Zoning regulations are established by enactment of a local (city, town, or country) zoning ordinance.
Zoning variance - a legally authorized modification in the use of property at a particular location that does not conform to the regulated use set forth in the zoning ordinance for the surrounding area; not an exception or change in the legally applicable zoning. See also legally nonconforming use.
All definitions were transferred from The Dictionary of Real Estate Appraisal produced by the Appraisal Institute.
If you have a question about any of these terms or need an explanation of an item on your appraisal, feel free to call Devon at 941-889-9393 or Nita at 719-960-6320
Devon at 941-889-9393 or Nita at 719-960-6320
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