Radiation
Process by which electromagnetic energy
is propagated through free space by virtue of joint undulatory variations in the
electric and magnetic fields in space.
Radon
Radioactive gas that may enter structures from beneath the ground level and contaminate the air within.
Random Sample
A sample for which each item of the population
has an equal chance of being included and, by extension, each possible combination
of n items has an equal chance of occurrence.
Range
(1) The maximum value of a sample, minus
the minimum value. (2) The difference between the maximum and minimum values that
a variable may assume.
Range Line
One of a series of survey lines running
due north and south at six-mile intervals, used for locating parcels of land under
government survey. See also meridian, principal. Contrast township line.
Rank
(1) The position of an item relative to
others in a set ordered according to the value of each member of the set in relation
to the others. (2) The act of ordering the members of a set according to the value
of each member in relation to the others. For example, the numbers 0.95, 0.87, 1.09,
and 0.83 have ranks of 3, 2, 4, 1. See also Spearman rank test.
Raster Image
An image represented by a series of lines
and samples.
Ratio Study
A study of the relationship between appraised
or assessed values and market values. Indicators of market values may be either
sales (sales ratio study) or independent "expert" appraisals (appraisal ratio study).
Of common interest in ratio studies are the level and uniformity of the appraisals
or assessments. See also level of appraisal and level of assessment.
RCN
Replacement cost new or reproduction cost
new.
RCNLD
Replacement cost new less depreciation
or reproduction cost new less depreciation.
Real Estate
The physical parcel of land and all improvements
permanently attached. Compare real property.
Real Property
Consists of the interests, benefits, and
rights inherent in the ownership of land plus anything permanently attached to the
land or legally defined as immovable; the bundle of rights with which ownership
of real estate is endowed. To the extent that "real estate" commonly includes land
and any permanent improvements, the two terms can be understood to have the same
meaning. Also called "realty."
Real Time
To make images or data available for inspection
simultaneously with their acquisition.
Realty
(1) Any tangible thing whose fee ownership
constitutes real property, that is, land or improvements. (2) A synonym for real
estate.
Reappraisal
The mass appraisal of all property within
an assessment jurisdiction accomplished within or at the beginning of a reappraisal
cycle (sense 2). Also called revaluation or reassessment.
Reappraisal Cycle
(1) The period of time necessary for a
jurisdiction to have a complete reappraisal. For example, a cycle of five years
occurs when one-fifth of a jurisdiction is reappraised each year and also when a
jurisdiction is reappraised all at once every five years. (2) The maximum interval
between reappraisals as stated in laws.
Reassessment
(1) The relisting and revaluation of all
property, or all property of a given class, within an assessment district by order
of an authorized officer or body after a finding by such an officer or body that
the original assessment is too faulty for correction through the usual procedures
of review and equalization. (2) The revaluation of all real property by the regularly
constituted assessing authorities, as distinguished from assessment on the basis
of valuations most or all of which were established in some prior year. See also
revaluation.
Receiver
One who is appointed by a court of equity
as its representative to manage property owned by an insolvent debtor until the
claims of creditors have been met or to manage property that is the subject of a
law suit pending its outcome.
Reciprocal
The result obtained when 1 is divided by a given number. For example, the reciprocal of 4 is 0.25. Factors are reciprocals
of rates.
Reclamation
The process of physically changing economically
unusable land to be suitable for use.
Reconciliation
The final step in the valuation process
wherein consideration is given to the relative strengths and weaknesses of the three approaches to value, the nature of the property appraised, and the quantity and
quality of available data in formation of an overall opinion of value (either a
single point estimate or a range of value). Also termed "correlation" in some texts.
Rectangular Land Surveys
Land description systems based on permanent,
uniformly sized rectangular grids that can be subdivided into smaller units of land.
Rectification
(1) The process by which the geometry
of an image area is made planimetric. (2) The process of converting a tilted or
oblique photograph to the plane of the vertical by projecting it onto a horizontal
reference plane, with the angular relationship determined by the use of control
points recognizable on the photograph and an accurate map.
Rectify
To reconcile photographs or other representations
of a curved surface, such as the earth, in order to form a single, two-dimensional
representation, such as a map, of the surface features on the curved object.
Region of Rejection
In tests of hypotheses, that range in
which one has at least the specified degree of confidence that a calculated statistic
will not fall when the null hypothesis is true.
Registration
The process of superimposing two or more
images or photographs so that equivalent geographic points coincide. Registration
may be done digitally or photographically.
Regression Analysis
Regression Coefficient
The coefficient calculated by the regression
algorithm for the data supplied that, when multiplied by the value of the variable
with which it is associated, will predict (for simple regression) or help to predict
(for multiple regression) the value of the dependent variable. For example, in the
equation, Value = $10,000 + $5,000 + number of rooms, $5,000 is a regression coefficient.
Regression Line
The line on a graph that represents the
relationship defined by the regression coefficients. For example, the line from
the relationship given in the definition of regression coefficient would cross the
y-axis at the value $10,000 and would go up $5,000 for each movement of 1 to the
right. This example illustrates one of the subtleties required in understanding
regression analysis: in fact, there is no line, because the independent variable
is not a continuous variable, but it is easier to talk about the relationship by
pretending that the variable is continuous and represent the relationship by a line
rather than the more nearly correct series of vertical bars on a bar chart.
Regressivity
Regressivity Index
REIT
Real estate investment trust; combines
capital of many investors to acquire or finance real estate through formation of
a corporation whose shares are traded in a market.
Reject Code
A flag applied to a record indicating
that it should
not be used for certain purposes.
Relationship
The phenomenon whereby knowledge
of the value of one variable tells you something about the probable value of another.
(See correlation.) Relationships may be positive (an increase in the value of one
variable implies an increase in the value of the other variable) or negative (a
change in the value of one variable implies a change in the other direction for
the value of the other variable). Independence of two variables means that there is no relationship between them.
Reliability
In a sampling process, the extent to which
the process yields consistent population estimates. Ratio studies typically are
based on samples. Statistics derived from these samples may be more or less likely
to reflect the true condition in the population depending on the reliability of
the sample. Representativeness, sample size, and sample uniformity all contribute
to reliability. Formally, reliability is measured by sampling error or the width
of the confidence interval at a specific confidence level relative to the central
tendency measure.
Relief
The variation in elevation between the
high and low parts of a surface.
Remaining Economic Life (REL)
As of the appraisal date, the number of
years in the future over which the operation of an asset is anticipated to be economically
feasible; often expressed as a percentage of the total economic life (REL %).
Remodel
To improve a structure by changing its
floor plan, functions, or characteristics.
Rent, Economic
(1) In appraisal, the annual rent that
is justified for the property on the basis of a careful study of comparable properties
in the area; market rent. (2) In economics, the payment received by an owner of
something being bought or rented in excess of the minimum amount for which he or
she would have sold or rented it.
Rent, Gross
The total amount received by a lessor
from a lessee, without deduction for taxes, maintenance, or any other payments made
by the lessor on account of the leased property. Contrast rent, net.
Rent, Ground
The rent paid for the right of use and
occupancy of a parcel of unimproved land, or that portion of the rent paid for the
right of use and occupancy of a parcel of improved land that is imputed to the land
as distinguished from the improvements. Compare rent, economic. See also lease,
ground.
Rent, Net
The amount remaining to the lessor out
of gross rents after deducting taxes on the property, insurance, repairs, expenses
of management, and any other operating and maintenance expenses payable by him or
her on account of the leased property. Note: Net rent is arrived at before deduction
of depreciation expenses, interest on the lessor's investment in the property, and
income taxes payable by the lessor.
Repeat Sales Analysis Model
Repeat sales analysis (see Section 4.4:
Time Series Analysis) aggregates changes in value and statistical means for properties
sold more than once during a specified period of time in a given geographic area. For example, in a zip or postal code area, estimate market-level housing price changes.
If an individual property has not been substantially changed since its last sale, this analysis matches each pair of sales transactions (thus the name “repeat sales”).
The amount of appreciation (or depreciation) is calculated from the time of the
first sale to the second and so on, providing an estimate of the overall appreciation
of that local housing market during that time period. The larger the number of available
sales pairs, the more statistically reliable the estimate of overall housing price
trends will be. Because this analysis is based on identifying properties where more
than one sale has occurred, the challenge is to identify enough observations to
provide a meaningful index of housing values, while keeping to as small a geographic
area as possible. A repeat sales index may also overestimate market appreciation
if the data contains pairs of sales in which the second sales price reflects substantial
improvements (or other alterations) made to the property after the first sale. On
the other hand, repeat sales indices can and do provide very useful valuation estimates
in jurisdictions where the data is insufficient to support hedonic models. In addition,
they may prove to be more accurate in tracking housing values for the houses that
a hedonic model may struggle with (especially those subject to extreme positive
or negative influences) when a prior sale is known on the property.
Replacement Cost; Replacement Cost New
The cost, including material, labor, and
overhead, that would be incurred in constructing an improvement having the same
utility to its owner as a subject improvement, without necessarily reproducing exactly
any particular characteristics of the subject. The replacement cost concept implicitly
eliminates all functional obsolescence from the value given; thus only physical
depreciation and economic obsolescence need to be subtracted to obtain replacement
cost new less depreciation (RCNLD).
Representative Sample
A sample of observations from a larger
population of observations, such that statistics calculated from the sample can
be expected to represent the characteristics of the population being studied.
Reproduction Cost; Reproduction Cost New
The cost of constructing a new property,
reasonably identical (having the same characteristics) with the given property except
for the absence of physical depreciation, using the same materials, construction standards, design, and quality of workmanship, computed on the basis of prevailing prices and on the assumption of normal competency and normal conditions.
Repurchase Agreement
A short-term financing arrangement whereby
those needing funds sell securities but agree to repurchase them at a fixed price
at a specified time.
Required Rate of Return on Equity
A component of the discount rate, as it
is understood from the point of view of band-of-investment analysis, and a component
of the overall rate developed according to mortgage-equity analysis.
Residence
(1) A domicile. (2) A domicile at which
a person is actually dwelling. (3) A dwelling place, whether or not it constitutes
a domicile (preferred). Note: Ordinarily, in the law of taxation, "residence" means
"domicile" unless a contrary meaning is specified or is indicated by the context.
Residential (Nonfarm) Single-Family
Includes each detached, semidetached,
or attached house, if separately assessed and not on a farm, that is a residence
for one family only. For detached houses, this would include one-family rural properties
or suburban estates not used primarily for farming, and mobile homes assessed as
real property. This category includes each condominium unit in a multiunit dwelling
structure, plus each condominium's share of the common area, unless the common area
is separately assessed.
Residential (Nonfarm), Multifamily
Includes each residential property that
contains two or more living units, including duplexes, apartment houses, and cooperatives
that are assessed as a single entity. The category encompasses street level stores
and doctors' offices in apartment buildings, but excludes motels or hotels.
Residential Property
Real property that might be vacant land
or an improved parcel of land devoted to or available for residential use. See also
property use category.
Residual
The difference between an observed value
and a predicted value for a dependent variable.
Residual Technique
A method of arriving at the unknown value
of a property component by subtracting the known values of other components from
a known overall value.
Residual Value
The value of the property after cleanup
of environmental contamination. This may be more or less than the original value
depending on counterbalancing effects of stigma and improvements to plant efficiency.
Residual Value of Improvements
A value ascribed to improvements on a
parcel of land by deducting from the total value of land and improvements (as determined
by composite appraisal) the value of the land alone (as determined by comparison with other parcels). Contrast residual value of land. Note: A residual value of
improvements is usually estimated only when the land is obviously not improved to
its highest and best use.
Residual Value of Land
A value ascribed to land alone by deducting
from the total value of land and improvements (as determined by composite appraisal)
the value of the improvements (as determined by the depreciated reproduction cost
method). Contrast residual value of improvements.
Restriction
A described limitation on use of a property.
Revaluation
A reappraisal of property; especially
a complete reappraisal of real property after assessment for one or more years on
valuations most (or all) of which were established in some prior year. Compare reassessment
and reappraisal.
Reversion
The right of possession commencing on
the termination of a particular estate.
Review
(1) Consideration by a board of appeals,
a board of equalization, a board of review, or a court, of individual, property
class, or district assessments, whether for the purpose of adding omitted taxable
property, removing exempt property, or equalizing the valuations placed on listed
property. Compare equalization. (2) The act or process of critically studying a
report, such as an appraisal, prepared by another.
Right, Air
A right to use and occupy the space lying
above a stated elevation or within certain distances above the ground surface, in
conjunction with specified spaces on the surface for the support of foundations;
for example, the rights granted by railroads to build above their right-ofways.
Right, Littoral
Any right attaching to a parcel of land
that appertains to standing water bordering on such parcel. Compare right, riparian.
Right, Riparian
Any right attaching to a parcel of land
that appertains to running water bordering on or flowing over such parcel; for example,
the right to natural flow unobstructed by artificial checks or barriers, to freedom
from unreasonable pollution, of access to the water, of accretion. Compare right,
littoral; right, water.
Right, Water
The right to a supply of water.
Right-of-Way
(1) An easement consisting of a right
of passage through the servient estate (preferred). (2) By extension, the strip
of land traversed by a railroad or public utility, whether owned by the railroad
or utility company or used under easement agreement.
Rights, Property
Rod
A land measure of 16+ feet or twenty-five
links. Also called a "pole."
Root Mean Square (RMS)
The square root of the average value of
the sum of the squares of the differences between values in a set and the corresponding
values that have been accepted as correct or standard. Used to measure map accuracy.
Royalty
(1) A payment made periodically or at
irregular intervals to the owner of a patent or copyright for the privilege of reproducing
or using a patented or copyrighted article. (2) A payment made periodically or at
irregular intervals to the owner of an interest in mineral land for the privilege
of exploring for, and/or mining and disposing of, mineral deposits.
Rule
See Baltimore rule, Harper rule, and so on.
Russell-NCREIF Index
A performance measure for institutional
real estate, maintained by the National Council of Real Estate Investment Fiduciaries
Research Institute.
REO Property
This abbreviation stands for Real Estate Owned Property. Typically referenced by
lending institutions and governmental agencies.
