Glossary of Terms - Property Value
Definitions are referenced from various governmental real estate sites,
IAAO
Wasting Asset
A property or other thing of value whose value diminishes with the passage of time. For example, buildings are a wasting
asset, but land and gold, traditionally, are not.
Weighted Average Method
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.
Weighted Coefficient of Dispersion
The coefficient of dispersion when the
absolute differences between individual assessment ratios and the measure of central
tendency (for example, median ratio) are weighted on the basis of sale price.
Weighted Coefficient of Variation
The coefficient of variation when the
squared differences between individual assessment ratios and the arithmetic mean
ratio are weighted on the basis of sale price.
Weighted Mean Ratio
Sum of the appraised values divided by
the sum of the
sales prices (or independent estimates of market value), which weights
each ratio in proportion to the sale price (or independent estimate of market value).
Weighted Mean; Weighted Average
An average in which each value is adjusted
by a factor reflecting its relative importance in the whole before the values are
summed and divided by their number.
