Glossary

IMPROVEMENTS: This is any item added to vacant land with the intent of increasing its value or usability.

IMPROVEMENT RATIO: This is the comparative value of an improved piece of land to its natural and unaltered state.

INCOME APPROACH: The process by which an estimation of the value of property by considering the present value of a stream of income generated by the property.

INCOME PROPERTY: The definition is apiece of property whose highest and best use is the generation of income through rents or other sources.

INDEPENDENT APPRAISAL: This is an estimation of value created by a professional, certified appraiser with no vested interest in the value of the property.

INSPECTION: The physical examination of a piece of property, its buildings or other amenities.

INSURABLE TITLE: When the title to property has been sufficiently reviewed by a title insurance company, that they are willing to insure it as free and clear.

INTEREST RATE: This is percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.

INVESTMENT PROPERTY: This is any piece of property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the property value over time.