Real Estate Appraisal Key Terms
Understand the appraisal process by learning important real estate appraisal termsReal estate appraisals are complex calculations to determine the value of a piece of property. There are various types of appraisal services which have different effects on the property owner. Business valuation and the commercial property appraisal report are two commonly used appraisal terms in this sector. Businesses may also need to select an appraiser with an MAI designation.
Fair market valueFair market value is a term used heavily among real estate appraisers. In short, it is the value of a piece of property as defined by the recent sales in the immediate vicinity of the property. It is a common term used to describe the value of a property for sale.
Eminent domainEminent domain is the power of a government to take private property for public use. There is an appraisal done of the property to establish the fair market value which is paid to the property owner.
Condemnation appraisalA condemnation appraisal may be requested by a local, state or federal government when a property is to be condemned. In this type of appraisal, the fair market value of the property is estimated using a methodical process.
Business valuationA business valuation may be necessary for several reasons. This appraisal process may be needed to determine the value of a business for investment purposes. It may also be needed if the business will be sold or made part of an estate. These are often specialized services done by corporate appraisers, focusing on the real estate and income aspects of the business.
Commercial property valuation reportThe commercial property valuation report outlines the value of a commercial business or property, based on the physical location or income of the business.
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