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MARKET AREA |
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A geographic area, typically encompassing
a group of neighborhoods, defined on the basis that the properties within its
boundaries are more or less equally subject to a set of one or more economic forces
that largely determine the value of the properties in question.
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MARKET VALUE |
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Market value is the major focus of most
real property appraisal assignments. Both economic and legal definitions of market
value have been developed and refined.
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MASS APPRAISAL MODEL |
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A mathematical expression of how supply and demand factors interact in a market.
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MASS APPRAISAL |
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The process of valuing a group of
properties as of a given date, using standard methods, employing common data, and
allowing for statistical testing.
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MEAN |
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A measure of central tendency. The result of adding all the values of a
variable and dividing by the number of values. For example, the mean of 3,5, and 10
is 18 divided by 3, or six. Also called arithmetic mean.
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MEDIAN |
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A measure of central tendency. The value of the
middle term in an uneven number of items arranged or arrayed according to size;
the arithmetic average of the two central items in an even number of items similarly
arranged; a positional average that is not affected by the size of extreme values.
The median of 3,5, and 10 is 5. The middle number.
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MODEL CALIBRATION |
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The development of adjustments, or coefficients based on market analysis, that identifies specific
factors with an actual effect on market value.
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MODEL SPECIFICATION |
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The formal development of a model in a statement or equation,
based on data analysis and appraisal theory.
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MODEL |
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(1) A representation of how something works. (2) For purposes of appraisal,
a representation (in words or an equation) that explains the relationship between
value or estimated sale price and variables representing factors of supply and demand.
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