189 terms across 19 subjects

New York Real Estate Exam Glossary

This glossary defines 189 terms you need for the New York real estate salesperson exam, organized by the 19 subjects of the Department of State's 77-hour course. Each term opens into a short guide with a one-sentence definition, how the idea shows up in exam questions, an example, the trap students fall for and links to the official source.

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How to use this glossary

Read the one-line definition first. Then open the term for the exam cue, an example and the trap that costs students points.

Filter by topic Valuation

12 terms in Valuation

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A

Valuation

Appraisal

An appraisal is an opinion of value developed by a qualified appraiser for an identified use, property interest and effective date.

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C

Valuation

Capitalization

Capitalization is the process of converting income into an indication of value.

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Valuation

Comparable

A comparable is a property used as market evidence because it is sufficiently similar to the property being analyzed.

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Valuation

Comparative market analysis

A comparative market analysis (CMA) is a broker's analysis of relevant market data to help a seller or buyer consider a probable price range.

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Valuation

Cost approach

The cost approach is a valuation approach that adds land value to the depreciated cost of the improvements.

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D

Valuation

Depreciation

Depreciation is a loss in property value from physical deterioration, functional obsolescence or external obsolescence in appraisal.

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E

Valuation

External obsolescence

External obsolescence is a loss in value caused by influences outside the property.

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G

Valuation

Gross rent multiplier

A gross rent multiplier (GRM) is a factor that relates property price or value to gross rental income.

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H

Valuation

Highest and best use

Highest and best use is the legally permissible, physically possible, financially feasible and maximally productive use considered in valuation.

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I

Valuation

Income capitalization approach

The income capitalization approach is a valuation approach that converts a property's income expectations into an indication of value.

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M

Valuation

Market value

Market value is an opinion of the most probable price a property should bring under specified competitive and open-market conditions.

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S

Valuation

Sales comparison approach

The sales comparison approach is a valuation approach that compares the subject property with relevant sales and adjusts for differences.

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