Glossary of Terms - Select Appropriate Category to View Additional Data
Definitions are referenced from various governmental real estate sites,
IAAO
Adverse Possession
The exclusive occupation and continuous possession
of (another's) real property under an evident claim of title or right.
Aerial Photograph
A photograph of a part of the earth's surface taken
by an aircraft-supported camera.
Age/Life method
A method of estimating accrued depreciation founded
on the premise that, in the aggregate, a neat mathematical function can be used
to infer accrued depreciation from the age of a property and its economic life.
Another term is "straight-line depreciation" (see depreciation, accrued; and depreciation
method, straight-line).
Agricultural Property
Improved or unimproved land that is devoted to or available
for the production of crops and/or other agricultural products, livestock, and agricultural
support buildings.
Air Rights
The right to use space above real estate.
Algorithm
A computer-oriented, precisely defined set of steps
that, if followed exactly, will produce a pre-specified result, for example, the
solution to a problem.
Alienation
The transfer of title from one person to another.
Allocation by Abstraction
A method of separating a whole property value into
land and improvement components. The appraiser estimates replacement cost new, subtracts
an appropriate amount for depreciation, and subtracts the remainder from the whole
property value to estimate the land value.
Allocation by Ratio
A method of separating a whole property value into
land and improvement components, in which the appraiser develops proportions of
land and improvement values for comparable properties and applies those proportions
to the subject's whole property value.
Allocation Method
A method used to value land, in the absence of vacant
land sales, by using a typical ratio of land to improvement value. Also called land
ratio method.
Amenity
A feature of an improvement that enhances its suitability
for its basic use. A fireplace in a single-family residence is an amenity, as is
covered parking at an apartment complex. By definition, amenities always increase
value.
Amortize
The process of repaying a loan or recovering a capital
investment by means of a series of scheduled payments; typically includes interest
charges and principal repayment in each of the scheduled payments.
Ancillary Data
Subsidiary data used to define the area of interest,
for example, topographic, administrative, or geologic data. Ancillary data may be
digitized and merged with the primary image data to facilitate analysis.
Anticipated Use Method
A method used to appraise underdeveloped land. Expected
improvements to the land are specified, and total development costs are estimated
and subtracted from the projected selling price to give an estimate of the value
of the undeveloped land.
APN
This is the Assessor Parcel Number of the property refered
to as the Section block and Lot number in most jurisdictions.
Apportionment
Distribution of portions of a state-assessed unit value
to taxing jurisdictions.
Appraisal
The act of estimating the money value of property. (2) The
money value of property as estimated by an appraiser. (3) Of or pertaining to appraising
and related functions, for example, appraisal practice, appraisal services. Compare
assessment.
Appraisal Emulation Model
The appraisal emulation model (see Section 3.2.2.1
Comparable Sales Method) follows the steps that an appraiser might follow in forming
a value estimate (although not with the same insight or flexibility that a qualified
appraiser brings to the assignment). The model selects “comparable sales” using
some standard criteria. It then rates those comparable sales by suitability, based
on the physical and sales characteristics of each comparable sale, by adjusting
the varying elements (much as is done on an appraisal form); the model then calculates
an estimate of value.
Appraisal Foundation, The
The organization authorized by the United States Congress
as the source of appraisal standards and appraiser qualifications.
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