REB-FC6

Represents the money earned for the right to use capital.

• Profit

• Dividend

• Interest

• Revenue

In the income approach to value, reconstructed operating statements specify that the income projection is subject to the assumption that the property is run by a / an

• Average Competent Management

• Inefficient Management

• Highly Skilled Management

• Minimal Management

The period of time over which improvements contribute to property value.

• Economic Life

• Depreciation Period

• Market Value Duration

• Investment Horizon

An impairment of the utility or salability of an improvement or property due to negative influences outside the property.

• Economic Obsolescence

• Functional Obsolescence

• Physical Deterioration

• Market Fluctuation

The estimated amount for which a property, or space within a property, should lease on the date of valuation between a willing lessor and a willing lessee on appropriate lease terms in an arm's-length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion

• Market Rent

• Fair Market Value

• Leasehold Interest

• Rental Yield

Lose in value caused by a flaw in the structure, materials, or design that diminishes the function, utility. and value of the improvement

• Functional Obsolescence

• Economic Obsolescence

• Physical Deterioration

• External Obsolescence

The resulting amount of reducing the annual potential gross income by a vacancy allowance amount.

• Effective Gross Income

• Net Operating Income

• Gross Scheduled Income

• Total Income Potential

This cost estimate envisions constructing a structure of comparable utility, employing the design and materials that are currently used in the market.

• Replacement Cost

• Market Value

• Depreciated Cost

• Actual Cash Value

Primarily used to allocate a known amount of total depreciation, estimated by either the market extraction method or the age-life method, into its components

• Breakdown Method

• Component Allocation Method

• Depreciation Distribution Method

• Asset Segmentation Method

Method of estimating reproduction or replacement costs by applying the average or typical comparative cost (per square-meter cost) of similar improvements.

• Comparative Method

• Cost Approach

• Market Analysis

• Income Method