What does EGI stand for in property appraisal?

Effective Gross Income (EGI) is a critical concept in property appraisal as it represents the total income generated from a property after accounting for certain deductions. This includes the expected rental income from occupied units, plus any additional income from services or amenities, minus estimated losses from vacancy and collection losses.

Calculating EGI provides a more accurate reflection of the income that the property can produce over time, making it essential for valuing investment properties. This metric is fundamental for investors and appraisers as it impacts the overall valuation and analysis of a property's potential earning capability.

Using this understanding, it is clear why Effective Gross Income is the correct definition in the context of property appraisal, as it directly influences financial projections, investment decisions, and valuation assessments.