Glossary of Terms - Select Appropriate Category to View Additional Data
This is the Assessor Parcel Number of the property refered to as the Section block
and Lot number in most jurisdictions.
The number of full-sized and half-sized bathrooms in the dwelling. In order
to be a full bath, there needs to be three primary fixtures (toilet, sink, bathtub
or shower). This may very from jurisdiction to jurisdiction.
An term used by appraisers, real estate professional and the general public to describe properties which are similar in size, condition, location and amenities to a subject property whose value is being determined. Please refer to The Uniform Standards of Professional Appraisal Practice (USPAP) to review guidelines for determining a comparable property.
The ratio of net operating income to debt service, which is used to estimate the overall capitalization rate in direct capitalization.
The formula for the overall capitalization rate (OAR) is OAR = DCR + Annual debt cost + Debt percentage of capital structure.
LTV stands for Loan to Value ratio. This is the comparison estimate of the amount owed on a mortgaged property to its fair market value.
In land ownership, complete interest in a property, subject only to governmental
powers such as eminent domain. Also fee simple absolute. See estate in fee simple;
fee; and absolute ownership.
Geographical referencing or coding of data.
The reciprocal of the arithmetic mean of the reciprocals of each value in the data
set. The harmonic mean ratio is less affected by extreme values in the data set
than the arithmetic mean or the geometric mean.
Any parcel of land which has been improved to include the creation of roads, buildings or other structures. This is typically the portion of the value that is attributed to buildings and other improvements to the land.
(1) The right and power to interpret and apply the law; also, the power to tax and
the power to govern. (2) The territorial range of authority or control.
A test in inferential statistics, valid for all types of numerical data, that seeks to determine whether the observations
in a sample came from one population as opposed to three or more distinct, homogeneous subpopulations. This test is used in assessment to analyze assessment ratios from
three or more classes of property to determine whether significant assessment biases are present among the classes of property. When only two classes are being Compared,
the appropriate test is the Mann-Whitney test.
The description of a property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides measured
via a metes and bounds based on the caridnal aspects of the compass.
A percentage of a loan or mortgage value that is paid to the lender as compensation for
loaning funds. (1) The environment of a subject property that has a direct and immediate effect
on value. (2) A geographic area (in which there are typically fewer than several thousand properties) defined for some useful purpose, such as to ensure for later
multiple regression modeling that the properties are homogeneous and share important locational characteristics.
The person or entity of record that is on file with county jurisdictions as being the owner of the property.
The annual property tax owed on this property. Such taxes may include County, School, Town, Village, City or Special District. Purchasers of properties
need to investigate the actual cost of taxes and also determine if reassessments have been completed on properties.
Pertaining to the subjective nature of some variable of interest. For example, view, fire protection, quality, or site/location.
This abbreviation stands for Real Estate Owned Property. Typically referenced by
lending institutions and governmental agencies.
The name of the party which sold the property to the buyer.
The calendar year for which property tax is to be paid.
Annual publication of the Appraisal Standards Board of The Appraisal Foundation: "These Standards deal with the procedures to
be followed in performing an appraisal, review or consulting service and the manner in which an appraisal, review or consulting service is communicated. . . .STANDARD
6 sets forth criteria for the development and reporting of mass appraisals for ad valorem tax purposes or any other universe of properties" (p. 1).
(1) The process of estimating the value-market,investment, insured, or other properly defined value-of a specific parcel or parcels
of real estate or of an item or items of personal property as of a given date. (2)The process or business of appraising, of making estimates of the value of something.
The value usually required to be estimated is market value.
In personal property appraisal, a method of inventory cost accounting whereby inventory is valued according to the unit price
of all units owned throughout the year, calculated by dividing total acquisition cost of all inventory by the number of units owned.
(1) The return on investment applicable to a series of incomes that results in the present worth of each. Examples of yield
rates are interest rate, discount rate, equity yield rate, and internal rate of return. (2) The required rate of return on equity capital; a component of the capitalization
rate (or discount rate or mortgage-equity overall rate) that must be separately specified in band-of investment analysis and mortgage equity analysis.
The exercise of the police power to restrict land owners as to the use of their land and/or the type, size, and location of structures
to be erected thereon.
