The definitions herein are intended only as a general aid to appraisal users. They are not necessarily industry accepted definitions
or explanations.
The number of properties of a particular kind, usually lots in a subdivision, that can be sold
in a specific real estate market per a defined time period.
A measure of land area equal to 43,560 square feet. A square
lot measuring 209 feet by 209 feet is approximately 1 acre.
In Arizona every real estate sale (except for
certain exempt transactions, such as: title clarifications and government transfers) is required by law to have an “Affidavit of Property
Value” recorded, aka Affidavit of Sale. This Affidavit includes: grantor and grantee names and addresses and whether or not they are
related parties, sale price and terms, Assessor’s parcel number(s), legal description, partial interests, personal property included,
title company if any, notarized signatures, recording number(s), property type, type of deed, and property address if any. This document
is generally filled out by the title company, if one is involved, and generally appears to have reliable information.
Active Management
Area. This is a geographically defined area in Arizona in which water consumption is regulated to eventually balance water consumption
with recharge.
An opinion of value. It is an analysis, opinion, and/or conclusion relating to the nature, quality, value,
or utility of specified interests in, or aspects of, identified real estate. In developing an appraisal the appraiser: (1) gathers
data, (2) analyzes that data, and (3) draws logical conclusions there from. There are two kinds of appraisals (complete and limited)
and three kinds of reports (self-contained, summary, and restricted).
A non-profit educational organization
founded by 8 national appraisal organizations in 1987. Empowered in 1989 by the Financial Institutions Reform, Recovery, and Enforcement
Act, the Foundation is responsible for setting standards for appraisals and minimum qualifications for appraisers.
There
are 4 kinds of reports: Self-Contained, Summary, Restricted Use, and oral presentation.
A market sale in which the buyer
and seller are typically motivated and not subject to unusual stresses or influences. Non-arm’s length transactions might include
sales involving: related parties, divorce, death, personal distress, trades, etc.
The Assured Water Supply Program
is a consumer protection program designed to ensure that new subdivisions in Arizona have a secure supply of water with adequate quality
for at least 100 years. In an AMA, anyone who offers subdivided or unsubdivided land for sale or lease must demonstrate an assured
supply of water to ADWR before the land may be marketed to the public. To receive an assured water supply certificate from ADWR, a
developer must demonstrate that: 1) water of sufficient quantity and quality is available to sustain the proposed development for
100 years, 2) the proposed use is consistent with the management plan and achievement of the AMA management goal, and 3) the water
provider has the financial capability to construct water delivery and treatment systems to serve the proposed development.
The
sale of a major or substantial part, not in the normal course of business, of an enterprise’s assets, including but not limited to:
inventory, fixtures, equipment, supplies, buildings, land, etc. In a more general sense it is: the sale of a large number of things.