Key terms

• Assessed value: Value of a property given by the local municipality for tax purposes.
• Market value: How much something can be sold for in the market.
• Appreciation: Increase in the market value of a property because of changing market conditions or property improvements.
• Appraisal: A professional analysis of property value that takes into consideration examples of similar property sales.
• Assemblage: Acquiring multiple plots of land adjacent to each other. For Ithaca College, one property may be worth more despite market value because the college wants to control the use of the entire row of properties on Danby Road. 
• Escalator clause: A section in a real estate contract that states the interested buyer will raise their offer to a price limit if the seller receives a higher competing offer.
• Residential Assessment Ratio: Level of assessment for residential properties in a municipality. An RAR of 100% means that the assessed value is the market value. If a municipality has a lower RAR, it means reassessments are conducted less frequently and are less accurate to current market conditions.