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1 Anoka County City of LinoLakes I were to be sold in an arm's length transaction. Although the sale price of a property often reflects the market value; market value and sale price are not always synonymous. 1 GRADING OF PROPERTY The process used by an appraiser to identify the quality of construction in the physical structure. I HIGHEST AND BEST USE That reasonable and probable use that will support the highest present value, as defined, as of the effective date of an appraisal. HOMESTEAD For property tax purposes, homestead is a tax benefit granted to property owners (or qualifying relatives) who are Minnesota residents and who own and occupy their home as their primary place of residence. Homestead is a fact question which may require the assessor to utilize a number of indicators to determine if it is being appropriately claimed. Although factors such as mailing address and drivers license may sometimes be useful indicators to determine where a person lives, in the ' final analysis, the question comes down to, "Is the residence occupied as the applicant's primary place of residence?' In other words, do they actually live there? If the answer is no, no amount of supporting documentation such as voter registrations or mailing addresses can alter the fact. IMPROVED LAND Land having either on -site improvements, off -site improvements or both. IMPROVEMENT A structure or building permanently attached to the land. INCOME APPROACH That procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. The income approach is widely applied in appraising income - producing ' properties. Anticipated future income and /or revisions are discounted to a present worth figure through the capitalization process. INDEX OF REGRESSION Mean assessment ratio divided by the sales weighted- aggregate ratio. LEGAL DESCRIPTION A statement containing a designation by which land is identified 1 according to a system set up by law or approved by law. LIMITED MARKET VALUE A limitation which is imposed on how much the taxable 1 value of certain classes of property (agricultural homestead or nonhomestead, residential homestead or nonhomestead, noncommercial seasonal recreational residential) can increase over the preceding year's value. This limit does not apply to 1 an increase in your value due to improvement made to the property. MARKET APPROACH Traditionally, an appraisal procedure in which the market value ' estimate is predicated upon prices paid in actual market transactions and current listings, the former fixing the lower limit of value in a static or advancing market (price wise), and fixing the higher limit of value in a declining market; and the latter fixing the e higher limit in any market. It is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this technique is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data, (c) the degree 1 53