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| Balance - The principle that markets tend to move toward e quilibrium after a change in one of the determinants of supply or demand . |
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| Balloon mortgage - A mortgage. A mortgage not fully amortized at maturity and requiring a lump sum or balloon payment. |
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| Band-of-investment analysis - A perspective on (and a technique for estimating) the discount rate. The discount rate is viewed as being composed of two components, each weighted in proportion to typical financing terms for properties of the type in question. For example, if 75 percent loans are available at 9 percent interest and investors are known to seek a 14 percent return on equity, then the discount rate is 10.25 percent, this, (.075 x .09= .0675)+ (.025 x 14= .0350)= .1025=10.25 percent. |
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| 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, and differences between the two in terms of location, size, shape, topography, and the like are analyzed by the appraiser in estimating the value of the lot to be appraised. |
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| Benchmark - (1) a term used in land surveying to mean a known point of reference. (2) In property appraisal, a property of known value, and of known effective age and replacement cost. (3) By extension, a model property to be used in determining by comparison the grade or quality class of other properties. |
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| Bernard rule - A method of appraising corner lots whereby each lot is assumed to be two identical lots (one facing each of the streets), which are appraised using the appropriate average-unit-value rates. The values are summed to get the total value of the lot. |
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| Bias - A statistic is said to be biased if the expected value of that statistic is not equal to the population parameter being estimated. A process is said to be biased if it produces results that vary systematically with some factor that should be irrelevant. In assessment administration, assessment progressivity (regressivity ) is one kind of possible bias. |
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| Building residual technique - A technique used to estimate the value of a property from a knowledge of its net operating income , discount rate, remaining economic life , land value, the income path attributable to the building, and the income path attributable to the land. The technique estimates total value by discounting the income stream attributable to the building and adding the result to an independent estimate of the value of the land. |
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