Acre
A land measure equal to 43,560 square feet.
Acreage
Units used to measure the size of a property.
Ad Valorem Tax
Tax levied based on the value of an item. Property tax is an ad valorem tax, which is based on the assessed value of the property.
Ad Valorem Taxation
According to the value of the property.
Adjusted Sale Price
The sale price adjusted, as necessary, for the differences between the comparable and subject properties.
Age/Life
A method of estimating accrued depreciation based on the age of the property and its economic life. Another term is straight line depreciation.
Air Conditioning type
The primary cooling source for the residence.
Amenity
A tangible or intangible benefit of real property that enhances its attractiveness or increases the satisfaction of the user, but is not essential to its use. Natural amenities may include a pleasant location near water or a scenic view of the surrounding area; man-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.
APN
A numeric system for referring to each parcel of property within the county. (Composed of map books, pages, blocks and parcels.) Also referred to as Assessor's Parcel Number.
Appraisal
The act or process of estimating value; an estimate of value. An analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate.
Appraisal Date
The moment in time for which a valuation is prepared. The date as of which an appraisal is made.
Appraised Value
A professional estimate of the actual value of a property.
Appreciation
An increase in property value, from all causes.
Approaches to Value
Systematic procedures used to derive value indications in real property appraisal. (See also- cost approach, income capitalization approach, sales comparison approach).
Appurtenance
Something that has been added or appended to a property and has since become an inherent part of the property. Usually passed with property when title is transferred.
Arm's-Length Sale
A sale between two unrelated parties, each of whom is reasonably knowledgeable of market conditions and under no undue pressure to buy or sell.
Assessed Value
The monetary amount which a property is entered on the assessment roll for purposes of computing the tax levy. Assessed value equals full cash value multiplied by the assessment ratio.May be higher or lower than market value, or based on an assessment ratio that is a percentage of market value.
Assessment Date
The status date for tax purposes. Appraised values reflect the status of the property and any partially completed construction as of this date.
Assessment Level
The common or overall ratio of assessed values to market values.
Assessment Roll
The official list of all property within the County assessed by the Assessor.
Assessor
The head of an assessment jurisdiction, which may be an elected or appointed position.
Assessor Parcel Map
Assessor parcel maps reflect the legal boundaries and dimensions of each parcel, and serve as the basis for land value assessments.
Attribute
Characteristic of a property.
Base Line
A principle east-west line in the rectangular land survey system.
Base-Lot Method
A method of appraising land parcels whereby each parcel to be appraised is compared with a parcel of known value, called the base lot.
Board of Equalization
A nonjudicial board that reviews assessments to see that all districts are assessed at a uniform level of value; authorized to raise or lower the assessments to achieve a uniform basis of taxation.
Building Improvements
Usually means the betterment of real property by the addition of a structure(s) or the addition of additional capacity to an existing structure.
Bundle of Right
The six basic rights associated with the private ownership of property; the right to use real estate, to sell it, to rent or lease it, to enter or leave, to give away, and/or to refuse to do any of these rights.
Business Description
A general classification specifying the type of trade a business is engaged in, such as manufacturing, retailer, wholesaler, or professional services.
Business Personal Property
Business personal property is assessable, and includes computers, supplies, office furniture and equipment, tooling, machinery and equipment. Most business inventory is exempt. (See personal property).
C.C.& R’s
Abbreviation for declaration of conditions, covenants and restrictions document. A legal document typically recorded by the subdivision developer concurrently with the subdivision plat map. Lists the express assurance and limitation on land binding on all current and subsequent owners.
Cadastral Map
A map displaying property ownership boundaries, dimensions, and other useful information, such as parcel identification numbers.
Capitalization Rate
The ratio between net income and value. The current value of a property can be estimated by dividing its current or stabilized net income by the appropriate capitalization rate.
Capitalized Leased Equipment
Items of equipment whose acquisition was funded on a lease contract, and the title of which will go to the purchaser with the final payment.
Cash Flow
Rental income remaining after deducting for operating expenses and debt service.
Casual Use Property
Common area property with a minimum of facilities used exclusively by project residents, their families and invited guests without restriction, subject to rules as established by the homeowner organization board of director, and at no additional cost or fee. No commercial uses or paid staff to coordinate activities are present in this type property. A professional management company or other services may be hired to maintain and repair said property.
Change
The tendency of the social and economic forces affecting supply and demand to alter over time, thus influencing market value.
Coefficient of Dispersion
A statistical measure of assessment uniformity for a category of property or for all property within a taxing jurisdiction. Also referred to as C.O.D.
Combination
When two or more parcels are combined into one parcel.
Common Area
Land and improvements within a lot, parcel, or area for the beneficial use and enjoyment of all owners. The common area may be held by owners of lots or residential units as an undivided interest, owned in its entirety by a homeowners' association, or a combination of both.
Comparables
A shortened term for similar property sales, rentals, or operating expenses used for comparison in the valuation process; also called "comps".
Comparative Unit Method
(1) The most widely used method of cost estimating. Direct and indirect costs are summed and divided by an appropriate unit to derive a cost per unit. (2) A method of appraising land parcels in which an average or typical value is estimated for each stratum of land.
Complex
In real estate, a group of buildings, site improvements, and support facilities designed to carry out related activities in a single location; e.g., apartment complex, office complex.
Condominium
Ownership is mandated by statue and requires publication of a declaration creating the condominium (sometimes called a horizontal property regime). Fee tile to a condominium provides the owner with horizontal and vertical space as well as an undivided interest in other appurtenance, such as land, recreation facilities, exterior walls, roof, elevators and basements. Known as common elements. There are several types of condominiums: high-rise, walk-up, garden type, and commercial use. 1. A form of fee ownership of separate units or portions of multi-unit buildings that provides for formal filing and recording of a divided interest in real property; 2. A multi-unit structure or property in which persons hold fee simple title to individual units and an undivided interest in common areas.
Conformity
The value of a property depends in part on its relationship to its surroundings. Value is created and sustained when the characteristics of a property conform to the demands of its market.
Consistent Use
The concept that land cannot be valued on the basis of one use, while the improvements are valued on the basis of another.
Contract for Deed
A contract for sale in which the seller retains title until the buyer completes the contracted payments for the property. The sale is not recorded until title passes to the buyer. (See also Land Contract).
Contract Rent
The actual amount of rent, per unit of time, that is specified in the lease.
Contribution
Principle of value which states that total value may not equal the total cost of the individual parts. For example, adding a third bathroom to a small house will probably increase value less than the cost of the improvement.
Cooperative
Owner hold title to shares of stock in a cooperative corporation which in turn hold title to the entire property as a single unit with apartment numbers issued to each living unit. Owner receives the proprietary right to occupy his apartment and use the common areas with all other co-op owners.
Co-owner
The full name of the second owner of the parcel of property (e.g. Jane H. Doe).
Corner Influence
An effect on value found most often in commercial properties because of greater ease of entry and exit, accessibility to higher volume of traffic and increased show-window and advertising space.
Cost Approach
The method of estimating the value of property by: (1) estimating the cost of construction based on replacement or reproduction cost new or trended historical cost (often adjusted by a local multiplier); (2) subtracting depreciation and; (3) adding the estimated land value. The land value is most frequently determined by the sales comparison approach.
Cost Index
An index showing the variations in construction costs over time.
Cost Manual
Cost manual is a set of cost factors organized in schedules or tables, with instructions for their use.
Cost Model
A method of valuing property improvements by estimating their cost to replace and then depreciating this replacement cost for actual age of the improvement. Cannot be used to value the land. Depends heavily on accurate cost data and recognizing construction differences in structures.
Cost of Development
A method that projects improvements to the land, estimates the total revenues and development costs, and calculates the value residual to the land after subtraction of all costs, expenses, and profit.
Cost to Cure
Estimated cost to correct or replace a component or defect within a property.
CO-TRS
County
The largest division of local government in all states except Louisiana and Alaska, where the comparable units are parish and borough, respectively.
County Board of Equalization
The board which, upon hearing competent evidence, has the authority to correct and adjust the assessment rolls in its respective county to conform to fair cash value.
Curable
That part of depreciation that can be revised by correcting deferred maintenance and remodeling to relieve functional obsolescence.
Curable Depreciation
Items of physical deterioration or functional obsolescence that are economically feasible to cure. Economic feasibility is indicated if the cost to cure is equal to or less than the anticipated increase in the value of the property.
Date of Sale
The date upon which the sale is agreed. This is considered to be the date the deed, or other instrument of transfer, is signed.
Date of Transfer
The date upon which the sale is agreed. This is considered to be the date the deed, or other instrument of transfer, is signed.
Debt Service
The total payments of principal and interest on a mortgage.
Declarant
Person or entity that creates and records the subdivision or condominium documents including the project C.C. & R. Typically synonymous with the project developer.
Deed
A written, legal instrument that conveys an estate or interest in real property when it is executed and delivered. (See also Quitclaim Deed, Warranty Deed).
Deed Restriction
A limitation that passes with the land regardless of the owner; usually limits the property’s type or intensity of use.
Delinquent Amount Due
The total amount of past due taxes on the property.
Demand
Schedule showing the amount of a good or service that would be purchased at various prices during a given period.
Depreciation
The loss in value from all causes to property, after construction or purchase.
Depreciation Schedules
Tables used in mass appraisal which show the typical loss in value at various ages or effective ages for different types of properties.
Depth Factor
Standard, mechanical technique for determining the value of an urban land lot having certain depth from the value of a base lot having different dimensions.
Deterioration
Impairment of condition; a cause of depreciation that reflects the loss in value due to wear and tear, disintegration, use in service, and the action of the elements.
Direct Capitalization
Converts an estimate of annual income into an estimate of value, directly, by dividing the annual income by an appropriate rate or by multiplying the annual income by an appropriate factor.
Direct Cost
Cost incurred in construction on the site. For Example; materials, labor supervision and utilities.
Discount Rate
The rate of return on investment; used to convert future income into present value. The rate an investor requires to discount future income to its present worth.
Discounted Cash Flow Analysis
A yield capitalization method used to calculate the present value of anticipated future cash flows.
Divided Rights
Rights to property that have been divided among several owners in partnerships, joint tenancy, tenancy in common and time sharing.
Easement for Enjoyment and Use
An interest in real property that conveys use, but not ownership, of a portion or all of an owner’s property. A provision in the PUD’s C.C. & R.’s conveying enjoyment and use of the common areas to the subdivision lot owners, their families and guests.
Economic Life
The period of time during which buildings or other improvements on a property are expected to contribute positively to the value of the total property. At the end of this period, the improvements are normally demolished and replaced. Also referred to, seen as Economic Years.
Economic Obsolescence
A cause of depreciation which is a loss in value as a result of impairment, inutility, or desirability caused by factors outside the property's boundaries. Or referred to as External Obsolescence.
Economic Rent
Effective Age
The typical age of a structure with respect to condition and utility, as of the appraisal date.
Effective Gross Income
The potential gross rent, less vacancy and collection loss, plus miscellaneous income. Also referred to EGI.
Effective Tax Rate
The tax rate expressed as a percentage of market value. It will be different from nominal tax rate when the assessment level is not equal to one.
Egress
A way out; an exit or outlet.
Eminent Domain
The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as "the takings clause," guarantees payment of just compensation upon appropriation of private property.
Engineering Breakdown Method
A detailed age-life method that can be used in conjunction with the quantity-survey or unit –in-place methods of estimation RCN.
Equalization
The process by which an appropriate governmental body attempts to ensure that property under its jurisdiction is appraised equally at market value, or as otherwise required by law.
Escape Assessment
An assessment to increase the roll value for a previous year when a property is under assessed or misses assessment.
Escheat
The right of government that gives the state titular ownership of a property when its owner dies without a will or any ascertainable heirs.
Estimated Market Value
Is the assessor's estimate of what a property would sell for in an arm's length transaction. Market value is defined as the most probable price that a well-informed buyer would pay a well-informed seller for a property without either party being unduly pressured to buy or sell.
Exterior Wall
The primary construction material used for the exterior wall.
Fair Cash Value
The value or price at which a willing buyer would purchase property and a willing seller would sell property if both parties are knowledgeable about the property and its uses and if neither party is under any undue pressure to buy or sell and for real property shall mean the value for the highest and best use for which such property was actually used, or was previously classified for use.
Fair Market Value
The amount of cash or its equivalent that a property would bring if exposed for sale in the open market. Also known as Full Cash Value.
Fee appraiser
An appraiser who is paid a fee for the appraisal assignments he or she performs.
Fee Simple Absolute
In land ownership, complete interest in a property, subject only to governmental powers. Also referred to as Fee Simple.
Final Order of Condemnation
A judicial order transferring either an easement or fee title to a plaintiff for property condemned under eminent domain proceedings.
Fiscal Year
The period beginning July 1 and ending June 30.
Fixture
An item of tangible property that was originally personal in nature, but because of the way it is used, the way it is attached, or both, has become an integral part of the building, it is classified as real property.
Foreclosure
The legal process in which a mortgagee forces the sale of a property to recover all or part of a loan on which the mortgagor has defaulted.
Fractional Assessment
Assessments that by law or by practice have assessment ratio/levels different from one.
Fractional Section
A subdivision of a Township containing more or less than 640 acres of land. Typically accounting for the overage or deficiency in acreage is done on the north and/or west side of a section, and Fractional Section are found on the north and/or west side of a Township.
Full Cash Value
Arizona Revised Statutes defines Full Cash Value (FCV) as being synonymous with market value. For assessment purposes, Full Cash Value approximates market value except for possible conditions unique to mass appraisal. This value is for the tax year shown at the top of the page.
Full Economic Cost
Cost for appraisal purposes. Includes all market costs (direct and indirect) necessary to purchase or construct equipment and make it ready for its intended use.
Functional Obsolescence
A cause of depreciation which is a loss in value due to inability of the structure to perform adequately, the function for which it is used, as of the appraisal date.
Functional Utility
The ability of improvements to satisfy market standards and demands.
GIS
One type of computerized mapping system capable of integrating spatial data (land information) and attribute data among different layers on a base map. Also referred to as Geographical Information Systems.
Golf Course
For purpose of valuation for property taxes in Arizona only those golf courses which meet all requirements set forth in A.R.S. 42-146.
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 makes a transfer of title to real estate.
Gross Leasable Area
All area within the outside walls, including lobbies, restrooms, janitor closets etc., designed for use and occupancy by the tenants.
Gross Lease
A lease in which the landlord (lessor) receives a stipulated rent amount and pays all of the operating expenses and taxes attributable to the property. A gross lease produces gross income to the lessor.
Hearing Date
The date of a scheduled appeal hearing for a property assessment appeal.
Heating Type
The primary heat source for the residence.
Highest and Best Use
The reasonable, probable, and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are; legal permissibility, physical possibility, financial feasibility, and maximum profitability. 2) Most profitable use at a specific time, given legal, physical and financial limitations. Also referred to as H&B.
Historical Cost
The original (original purchase) cost of a building, improvement, or personal property, as opposed to current replacement, or reproduction cost.
Homeowners Organization
Typically a nonprofit, incorporated entity owned and controlled by the PUD lot owners. Its purpose is to operate and maintain the common area property. Also known as homeowner’s association.
IAAO
International Association of Assessing Officers.
Income Approach
The method of estimating the value of a property based on income capitalization. Income figures should reflect current market conditions and typical management. 2) A set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.
Incurable
A part of depreciation where it is not economical to correct the condition, and if corrected, the cost of correcting the condition exceeds the value.
Incurable Depreciation
An element of accrued depreciation; a defect caused by a deficiency or superadequacy in the structure, materials, or design, which cannot be practically or economically corrected.
Indirect Costs
Cost incurred in construction away from the site. For example; fees, permits, insurance and loans.
Industrial Property
Land and/or improvements that can be adapted for industrial use; a combination of land, improvements, and machinery integrated into a functioning unit to assemble, process, and manufacture products from raw materials or fabricated parts; factories that render service, e.g., laundries, dry cleaners, storage warehouses, or those that produce natural resources, e.g., oil wells.
Ingress-Egress
A means of entering (ingress) and a way out; an exit or outlet (egress).
Intangible Personal Property
Rights over tangible real and personal property, but not rights of use and possession, for example, notes, bonds, stocks, patents, mortgages, copyrights, and insurance policies.
Interest
This is the amount that is imposed when payment is remitted after the due date.
Interest Rate
A rate of return on capital; the premium paid for the use of money.
Inventory
Items of personal property that become part of a product or are themselves a product that are held for sale or lease in the ordinary course of business.
Investment Property
Property that constitutes a business enterprise consisting of all tangible and intangible assets assembled and developed as a single unit of utility for lease or rental, in whole or in part, to others for profit; normally purchased in expectation of annual net income and/or capital gain.
Investment Value
Value to a specific investor. Investment value mayor may not coincide with market value depending upon the requirements of the specific investor.
Joint Tenancy
Joint ownership by two or more persons with the right of survivorship.
Land
Real estate or real property, except improvements.
Land Contract
A contract for sale in which the seller retains title until the buyer completes installment payments for the property. The sale is not recorded until title passes to the buyer. (See also Contract for Deed).
Land Description Systems
Common referred to as legal description, are written descriptions of the physical boundaries of property rights.
Land-To-Building Ratio
The proportion of land area to gross building area; typical land-to-building ratios for properties combine land and building components into a functional economic unit.
Land-to-Building Ratio
The ratio of land value to building (improvement) value. Also referred to as Land-to-Improvement Ratio.
Last Sold Date
The date on which a property parcel was last sold.
Law of Variable Proportions
Often called law of decreasing returns or the law of proportionality which states that when the quantity of one productive service is increased by equal increments, the quantities of other productive services remaining fixed, the resulting increment of product will decrease after a certain point.
Lease
A contract between an owner and tenant for the possession of real property that sets forth conditions for occupancy, use, and duration of the tenancy.
Lease Purchase Option Equipment
Equipment acquired via a lease purchase option in which the final payment, if made, transfers title to the lessee.
Legal Description
A description of land that identifies the real estate according to a system established or approved by law; an exact description that enables the real estate to be located and identified. A description of real property sufficient to locate it on the ground by reference to government surveys or approved recorded maps.
Legal Owner
The owner of title, as distinguished from the holders of other interests, e.g., beneficial or possessory interests.
Lessee
One who has the right to use or occupy property under a lease agreement.
Lessor
One who conveys the right to use and/or occupy property under a lease agreement.
Lien
The legal right to take or hold property of a debtor as payment or security for a debt.
Lien Date
The time when taxes for any fiscal year become a lien on property. The assessed value of property as of 12:01AM on the lien date (January 1) governs the tax status for the fiscal year beginning the following July 1.
Limited Property Value
A value of property which seeks the secondary value but is limited to maximum annual changes. Limited property value cannot exceed the full cash value. It is based on the previous year’s limited value increased by either 10 percent or 25 percent of the difference between the full cash value of the current year and the limited value of the prior year, whichever is greater, unless your property has been changed as defined ARS 42—201.01 C and D since the previous year. Used for taxation to fund general operating budgets.
Livable Square Footage
The area within the residence that is designed as living area, normally that which is heated and/or cooled.
Local Multiplier
An adjustment to replacement or reproduction cost new or historical cost, to reflect local costs.
Long-Lived Items
Items that are the basic structure of a building and are not usually replaced during economic life. For example: foundation, roof structure, and framing.
Lot
1. A distinct piece of land; a piece of land that forms a part of a district, community, city block, etc.; 2. A smaller portion into which a city block or subdivision is divided; described by reference to a recorded plat or by definite boundaries; a piece of land in one ownership, whether platted or unplatted.
Lot and Block Survey
A plat in which a larger parcel of land is subdivided into small units for the purpose of sale. Conveyances need to refer to only to the lot, block, and plat book designation.
Mailing Address
The address all correspondence is currently being sent to.
Market Price
Is the amount actually paid or about to be paid in a particular transaction.
Market Rent
The currently prevailing rent for properties comparable to the subject property.
Market Value
The most probable sale price of a property in terms of money in a competitive and open market, assuming that the buyer and seller are acting prudently, knowledgeably and for self-interest, allowing sufficient time for the sale, and assuming that the transaction is not affected by undue stimuli or duress.
Mass Appraisal
The systematic appraisal of groups of properties, as of a given date, using standardized procedures and statistical testing.
Mass Model
A method of determining the full cash value of property by noting the different characteristics of properties that are sold and using a multiple linear regression formula to assign weight to these different characteristics. This method values land and improvements as a unit. Used primarily for urban residential property where similarity of properties and sufficient volume of sales provides accurate data.
Master Planned Community
Development consisting of a large number of separate, subdivided projects with a wide variety of uses, including fairly substantial commercial and public use facilities to support the community. Common areas are typically owned by the developer initially and eventually by a multi-tiered property owner association consisting of a master association with junior, auxiliary association owning and controlling common areas in a particular subdivision subject to the master association. Sun City and Ahwatukee are good examples of master planned communities.
Meridian
A principle north-south line in the rectangular land survey system.
Metes and Bounds
A land description system in which boundaries are described as distance between two semi-permanent points or as lines following compass bearings.
Metes and Bounds System
A system for the legal description of land that refers to the parcel's boundaries, which are formed by the point of beginning (POB) and all intermediate points (bounds) and the courses or angular direction of each point (metes).
Model
Mathematical equations used to analyze quantities of data. Most of the models used in real estate appraisal are based on one of the three approaches to value.
Model Calibration
The development of adjustments, or coefficients based on sales analysis, that identifies specific factors that have an actual effect on market value.
Model Class
An overall rating or grade given to the residence.
Model Specification
The formal development of a model in a statement or equation, based on data analysis and appraisal theory.
Mortgage
A legal document providing a specific property as security for a loan under certain terms and conditions.
Multiple Regression Analysis
A statistical technique similar to correlation used to analyze data in order to predict the value of one variable (dependent), such as market value, from the known values of other variables (independent) such as lot size, number of rooms, etc. Also referred to as MRA.
Multiple Use
1. A combination of compatible land uses in an area; 2. A combination of compatible uses in a single building.
MVS
Marshall Valuation Service, published by Marshall Swift.
Neighborhood
The environment of a subject property that has a direct and immediate impact on its value.
Neighborhood Analysis
A study of the relevant forces which influence property values within the boundaries of a homogenous area.
Net Income
The income expected from a property, after deduction of allowable expenses.
Net Income Multiplier
A factor expressing the relationship between value and net operating income; the reciprocal of the overall rate.
Net Income Ratio
The ratio of net income to total gross income. It can be expressed as a percentage of potential gross income or of effective gross income. Traditionally, the net income ratio is expressed as a percentage of effective gross income.
Net Leasable Area
The area within a building or structure that is actually occupied by an individual tenant. Net leasable area does not include any of the common areas shared by other tenants, such as lobbies, restrooms, etc.
Net Lease
A lease in which the landlord (lessor) receives a stipulated rent amount and the tenant (lessee) pays all operating expenses and taxes attributable to the property. A net lease produces net income to the lessor.
Net Operating Income
The income expected from a property, after deduction of allowable operating expenses. Also referred to as NOI.
New Construction
The construction of new buildings, additions to existing buildings, or alterations which convert the property to another use or extends the economic life of the improvement, is reassessed, establishing a new base year value for only that portion of the property.
New Improvement Value
Is the amount added to the property's estimated market value due to additions, remodeling and other changes to the property.
Nominal Tax Rate
A mathematical expression of the relationship between the tax levy and the total assessment for a jurisdiction. (Levy divided by assessment = nominal tax rate).
Notice Value/Date
This refers the assessment notice that is mailed to a property owner concerning changes in the assessed value of the property. It contains information such as the Market and Assessed values as well as the date it was mailed. If property owners disagree with this change they must request an informal hearing with the Assessor's Office within the specified time frame regarding any change.
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