GLOSSARY
Market Approach to Value
An appraisal method in which the appraiser searches the market for selling prices of similar properties, and then, by the process of comparison and adjustments, estimates the value of the subject property. Also known as the Sales Approach or Comparison Approach.
Market Value
The most probable price expressed in terms of money the property would bring if exposed for sale in the open market in an arms length transaction between a willing seller and a willing buyer, both of whom are knowledgeable concerning all the uses to which it is adapted, and for which it is capable of being used. Implicit within the definition is: (1) that the value is the most probable price, not the highest not the lowest, not the average price; (2) the value is expressed in terms of money and a reasonable time for exposure to the market; (3) it requires an arms length transaction in the open market; (4) both buyer and seller are informed of the uses of the property; (5) it requires a willing buyer and a willing seller with no advantage being taken by either; and (6) it recognizes present use as well as potential use of the property.
Mass Appraisal
Process of valuing a universe of properties by employing a common reference for data in allowing for statistical testing. The State of Illinois is a mass appraisal state.
Median
The middle number of a list of numbers.
Median Level of Assessments
In Illinois the statutory median level of assessment is 33.333%.
Neighborhood
The environment of a subject property that has a direct and immediate impact on it's value. The boundaries being either natural (rivers, lakes, hills, etc.), man-made (streets, highways, railroad tracks, etc.) and political (city limits, school or zoning districts, etc.).