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N10
| Term | Definition |
|---|---|
| Capitalization | process of converting Net income into Value |
| Economic life | period of time property will produce income/economically beneficial |
| Gross Income | total rent collected |
| Capitalization rate | return rate an investor wants to receive. value (V) = net income (I) / cap rate (R) |
| Gross rent multiplier | equation to estimate values of small income properties. sales price (comp.)/rent |
| Reconciliation of data | bringing data together from 3 appraisal methods to determine final estimate |
| EPA | regulates federal environmental rules/laws |
| ADRE | commissioners require disclosure |
| Discovery | phase 1 of investigation |