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Glossary of Terms beginning with I

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I

Improved Land

Any parcel of land that has been changed from its natural state through the creation of roads, buildings or other structures.

Improvement Ratio

The comparative value of an improved piece of land to its natural, unaltered state.

Improvements

Any item added to vacant land with the intent of increasing its value or usability.

Income Approach

The process of estimating the value of property by considering the present value of a stream of income generated by the property.

Income Property

A piece of property whose highest and best use is the generation of income through rents or other sources.

Independent Appraisal

An estimation of value created by a professional, certified appraiser with no vested interest in the value of the property.

Inspection

The examination of a piece of property, its buildings, or other amenities.

Insurable Title

The title to property that has been sufficiently reviewed by a title insurance company, such that they are willing to insure it as free and clear.

Interest Rate

A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.

Investment Property

Any piece of property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the property value over time.

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