NORTHERN VIRGINIA REAL ESTATE

TEAR DOWN TERMINOLOGY

APPRAISAL - An estimate or opinion of value. The act or process of estimating value. The resulting opinion of value derived from the appraisal may be informal, transmitted orally; or it may be formal, presented in written form. Usually it is a written statement setting forth an opinion of the value of an adequately described property as of a specified date, supported by the presentation and analysis of relevant data. Synonym: valuation.

ARM'S LENGTH - A transaction freely arrived at in the open market, unaffected by abnormal pressure or by the absence of normal competitive negotiation as might be true in the case of a transaction between related parties.

ASSEMBLAGE - Putting together two or more lots to form a large parcel.

EASEMENT - A right-of-way giving individuals other than the owner permission to use a property for a specific purpose.

HIGHEST & BEST USE - A concept in real estate appraisal. It states that the value of a property is directly related to the use of that property; the highest and best use is the reasonably probable use that produces the highest property value. This use, the Highest and Best Use, may or may not be the current use of the property.

MARKET VALUE - The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

Implicit in this definition is the consummation of a sale as a specified date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated.
2. Both parties are well informed or well advised, and each acting in what he considers his own best interest.
3. A reasonable time is allowed for exposure in the open market.
4. Payment is made in cash or its equivalent.
5. Financing, if any, is on terms generally available in the community at the specified date and typical for the property type in its locale.
6. The price represents a normal consideration for the property sold unaffected by special financing amounts and/or terms, services, fees, costs, or credits incurred in the transaction.

MCMANSION - The construction of a home with substantially more gross living area than those generally constructed in the surrounding neighborhood.

PLAT / SURVEY PLAT - A map of a specific area of land (such as a town or subdivision) showing the boundaries of individual parcels, and typically showing improvements, streets, and easements.

REAL ESTATE - This refers to the physical land and appurtenances, including structures affixed thereto. In some states, by statute, this term is synonymous with real property.

REAL PROPERTY - This refers to the interest, benefits, and rights inherent in the ownership of the physical real estate. It is the bundle of rights with which the ownership of real estate is endowed. In some states, this term, as defined by statute, is synonymous with real estate. Does not include personal property.

STICK-BUILT HOME - This is a home built piece-by-piece at the home site.

TEAR DOWN - A property where the value of the lot as a potential site for a new home exceeds the value of the existing home on the lot.

TEAR OFF - Removing the roof of a home in order to construct a new floor/level before reconstructing a new roof.

UNIMPROVED LAND - is defined as land that does not have certain basic required services necessary to utilize it for other purposes. These include electricity, telephone, street access, or water available.