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1 Anoka County City of Lino Lakes 1 the correction or cure would be no more than the anticipated addition to utility, and hence ultimately to value, associated with the cure. ■ PHYSICAL INCURABLE DEPRECIATION Physical deterioration which in terms of 1 market conditions as of the date of the appraisal is not feasible or economically justified to correct. The cost of correcting the condition or effecting a cure is estimated to be greater than the anticipated increase in utility, and hence ultimately in value of the 1 property that will result from correcting or curing the condition. FUNCTIONAL DEPRECIATION Impairment of functional capacity or efficiency. Functional 1 obsolescence reflects the loss in value brought about by such factors as overcapacity, inadequacy and changes in the art, that affect the property item itself or its relation with other items comprising a larger property. The inability of a structure to perform adequately 1 the function for which it is currently employed. • FUNCTIONAL CURABLE DEPRECIATION Functional obsolescence which may be I corrected or cured when the cost of replacing the outmoded or unaccep -table component is at least offset by the anticipated increase in utility, and hence ultimately in value, resulting from the replacement. 1 • FUNCTIONAL INCURABLE DEPRECIATION Functional obsolescence that results from structural deficiencies or superadequacies that the prudent purchaser or owner would not be justified in replacing, adding or removing, because the cost of effecting a I cure would be greater than the anticipated increase in utility resulting from the replacement, addition or removal. I ECONOMIC OBSOLESCENCE Impairment of desirability or useful life arising from factors external to the property, such as economic forces of environmental changes which affect supply- demand relationships in the market. Loss in the use and value of a property arising I from the factors of economic obsolescence is to be distinguished from loss in value from physical deterioration and functional obsolescence, both of which are inherent to the property. Also referred to as Locational or Environmental Obsolescence. 1 EASEMENT A right held by one person to use the land of another for a specific purpose such as access to other property. 1 EQUALIZATION The adjustment of estimated market valuation of real property in a particular area to establish a more equitable division of the total tax burden within the area. I ESTIMATED MARKET VALUE Represents the assessor's estimate of the property's actual market value. Market value is defined as the most probable price that a well informed buyer would pay a well informed seller for a property without either party being unduly forced to buy or I sell. In other words, what the property would likely sell for if it 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. 1 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. 1 1 53