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Glossary
A-C | D-F
| G-I | J-L |
M-O | P-R | S-U
| V-Z
Market
An environment in which the buying and selling of goods and/or
services takes place, price being the result of the free play
of demand and supply, and in which there are many buyers and
seller.
Market Approach
One of the 3 major approaches to value estimation. It is based
on the idea that value can be derived by comparing the subject
property to recently sold similar properties with allowances
for differences. Comparables inferior to the subject property
(i.e. those not as good as or offering fewer or lower quality
amenities and features than the subject) likely suggest the
bottom value range for the subject property and comparables
superior, the upper. If adjustments are attempted, amenities
or features inferior or not as good as the same subject amenities
or features are adjusted upward and those superior adjusted
downward.
Market Rent
The rental income that a property would most probably command
in an open market.
Market Value
Per the Appraisal Foundation: The most probable price which
a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and
seller each acting prudently and knowledgeably, and assuming
the price is not affected by undue stimulus. Implicit
in this definition is the consummation of a sale as of
a specified date and the passing of title from seller
to buyer under conditions whereby:
- Buyer and seller are typically motivated;
- Both parties are well informed or well advised,
and acting in what they consider their best interests;
- reasonable time is allowed for exposure in the open market;
- payment is made in terms of cash in United States dollars
or in terms of financial arrangements comparable thereto;
and
- the price represents the normal consideration for the
property sold unaffected by special or creative
financing or sales concessions granted by anyone associated
with the sale.
Mean
A measure of central tendency of a set of data. It is calculated
by dividing the sum of the values of the data points by the
number of those data points.
Most Probable Price
The sale price that is most likely to occur or that is most
typical. This value represents the central tendency of a data
set, being not only the most likely mean and median but also
the most likely mode of an assumed normal distribution. Another
way of looking at this is: if the property in question were
to sell a great many times, as of a specified date, most,
or at least a plurality, of the sales would likely cluster
at or near this price. However, as with any statistical distribution,
some sales would also occur both above and below this amount.
Nominal Value
Little, minimal, or no value. A value very close to zero.
Something for which there is no market, hence, no market value.
Normal Curve
The curve that results from the graphical portrayal of a normal
distribution. It is usually symmetrical and “bell shaped”
in appearance with frequency (number of occurrences) shown
on the vertical axis and the factor being sought, such as:
price, size, etc. on the horizontal axis.
Normal Distribution
A set of data consisting of things uniform in character except
for one feature. Graphically represented by a normal curve.
Obsolescence
See depreciation.
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