GLOSSARY OF TERMS

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sales comparison approach
The process of estimating the value of a property by examining and comparing actual sales of comparable properties.
 
secondary mortgage market
A market for the purchase and sale of existing mortgages, designed to provide greater liquidity for mortgages; also called the secondary money market.  Mortgages are first originated in the primary mortgage market.
 
section
A portion of township under the rectangular (government) survey system.  A township is divided into 36 sections, numbered 1 through 26.  A section is a square with mile-long sides and an area of one square mile, or 640 acres.
 
seller carry back
An agreement in which the owner of a property provides financing, often in combination with an assumed mortgage.
 
setback
The amount f space local zoning regulations require between a lot line and a building line.
 
special assessment
A tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement like a street or sewer.
 
square-foot method
The appraisal method of estimating building costs by multiplying the number of square feet in the improvements being appraised by the cost per square foot for recently constructed similar improvements.
 
statutory lien
A lien imposed on property by statute - a tax lien, for example - in contrast to an equitable lien, which arises out of common law.
 
straight-line method
A method of calculating depreciation for tax purposes, computed by dividing the adjusted basis of a property by the estimated number of years of remaining useful life.
 
straight (term) loan
A loan in which only interest is paid during the term of the loan, with the entire principal amount due with the final interest payment.
 
survey
A print showing the measurements of the boundaries of a parcel of land, together with the location of all improvements on the land and sometimes its area and topography.