Wisconsin Real Estate Valuation and
Appraisal Principles — Complete Guide to
Market Value, CMA, and Property Analysis
Pending Property ✔✔A property that has an accepted offer to purchase with all the contingencies
removed.
Market Value ✔✔The price at which a property would sell on the open market to a buyer who is not
under duress, not related to the seller, is well informed about the property, and who has been found
within a reasonable amount of time.
Expired Property ✔✔A property that was listed for sale but did not sell during the term of the listing
contract.
Substitution ✔✔A property's value is determined by the cost of acquiring an equally desirable substitute
property.
Comparable Property ✔✔A benchmark used in the Market Data Approach to make a property value
estimate based on other properties that have recently sold and are similar to the subject property in
terms of location, physical features, price, and date of sale.
Appraisal ✔✔An estimate or opinion of value based on supportable evidence and approved methods.
Increasing Returns ✔✔Improvements are made to the property and the costs of those improvements
are recovered upon sale due to the increased value of the property.
, Active Property ✔✔Property currently for sale.
Contribution ✔✔Any component to a property is worth only what it adds to the property's value
regardless of the cost of the improvement.
Amenities ✔✔Features of a property that add value or desirability.
Appraiser ✔✔An independent person trained to provide an unbiased estimate of value for a fee.
Anticipation ✔✔Future physical, economic, social, or political changes that may affect present value of
property.
Market Analysis (Market Data Approach) ✔✔A study of a property by a real estate agent or appraiser to
establish a likely selling price of the property.
Highest and Best Use ✔✔The use of a property that would generate the most profit.
Regression ✔✔The value of a lesser property decreases the value of a better property.
Cost ✔✔The current reproduction cost of a building plus the value of the land tends to set the upper
limit of a property's value.
Conformity ✔✔The maximum value of a property that is realized when the other properties in the
neighborhood are similar.
Appraisal Principles — Complete Guide to
Market Value, CMA, and Property Analysis
Pending Property ✔✔A property that has an accepted offer to purchase with all the contingencies
removed.
Market Value ✔✔The price at which a property would sell on the open market to a buyer who is not
under duress, not related to the seller, is well informed about the property, and who has been found
within a reasonable amount of time.
Expired Property ✔✔A property that was listed for sale but did not sell during the term of the listing
contract.
Substitution ✔✔A property's value is determined by the cost of acquiring an equally desirable substitute
property.
Comparable Property ✔✔A benchmark used in the Market Data Approach to make a property value
estimate based on other properties that have recently sold and are similar to the subject property in
terms of location, physical features, price, and date of sale.
Appraisal ✔✔An estimate or opinion of value based on supportable evidence and approved methods.
Increasing Returns ✔✔Improvements are made to the property and the costs of those improvements
are recovered upon sale due to the increased value of the property.
, Active Property ✔✔Property currently for sale.
Contribution ✔✔Any component to a property is worth only what it adds to the property's value
regardless of the cost of the improvement.
Amenities ✔✔Features of a property that add value or desirability.
Appraiser ✔✔An independent person trained to provide an unbiased estimate of value for a fee.
Anticipation ✔✔Future physical, economic, social, or political changes that may affect present value of
property.
Market Analysis (Market Data Approach) ✔✔A study of a property by a real estate agent or appraiser to
establish a likely selling price of the property.
Highest and Best Use ✔✔The use of a property that would generate the most profit.
Regression ✔✔The value of a lesser property decreases the value of a better property.
Cost ✔✔The current reproduction cost of a building plus the value of the land tends to set the upper
limit of a property's value.
Conformity ✔✔The maximum value of a property that is realized when the other properties in the
neighborhood are similar.
