Glossary of Terms - Select Appropriate Category to View Additional Data
Definitions are referenced from various governmental real estate sites,
IAAO Bath
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.
Balloon Mortgage
A mortgage not fully amortized at maturity
and requiring a lump sum (or balloon) payment.
Baltimore Rule
Synonymous with Bernard rule.
Band-of-Investment Analysis
A perspective on (and a technique for
estimating) the discount rate. The discount rate is viewed as having two components,
each weighted in proportion to typical financing terms for properties of the type
in question. For example, if 75 percent loans are available at 9 percent interest
and investors are known to seek a 14 percent return on equity, then the discount
rate is 10.25 percent, that is, (0.75 x 0.09 = 0.0675) + (0.25 x 0.14 = 0.0350)
= 0.1025 = 10.25 percent.
Base Line
A survey line running due east and west
through the initial point of a principal meridian, from which township lines are
established by the government survey.
Base-Home Approach
A method of appraising single-family residential
properties whereby each residence to be appraised is Compared with one having common
or typical characteristics and of known value, called the base home, and differences
between the two in terms of condition, size, number of garages, and the like are
weighted by the appraiser in the determination of the value of the property to be
appraised.
Base-Lot Method
A method of appraising land parcels whereby each parcel to be appraised is Compared with a parcel having common or typical characteristics
and of known value, called the base lot, and differences between the two in terms
of location, size, shape, topography, and the like are analyzed by the appraiser
in estimating the value of the lot to be appraised.
Bearing
The angle between a given line and the direction in which a magnetic needle points. Note: The bearing of a line is expressed
in terms of quadrants and degrees; for example, N 50 degrees E; S 10 degrees W.
Bearing Wall
A wall that supports a portion of a structure.
Before-Tax Cash Flow
Amount of income remaining after deducting for operating expenses and debt service, but before income tax on operations is
deducted.
Benchmark
(1) A term used in land surveying to mean a known point of reference. (2) In property appraisal, a property of known value,
and of known effective age and replacement cost. (3) By extension, a model property
to be used in determining by comparison the grade or quality class of other properties.
Beneficial Estate
An estate of which the right to possession has not yet passed.
Beneficial Interests
The property interests resulting from equitable ownership in a property rather than legal ownership; for example, the
interests of the beneficiary of a trust.
Beneficiary
(1) The person for whose benefit property is held in trust. (2) The person to whom the proceeds of an insurance policy are
payable upon the happening of the event insured against or the non happening of the assured event. See also owner, equitable.
Bernard Rule
A term generally applied to an empirical rule of appraising a corner lot by adding together the value ascribable to it as
an inside lot on the main street and the value ascribable to it as an inside lot on the side street. Sometimes known as the Lindsay-Bernard or Baltimore rule. Compare
Zangerle curve.
Bias
A statistic is said to be biased if the expectedvalue of that statistic is not equal to the population parameter being
estimated. A process is said to be biased if it produces results that vary systematically with some factor that should be irrelevant. In assessment administration, assessment
progressivity (regressivity) is one kind of possible bias.
Binary Variable
(1) Binary variables are qualitative data items that have only two possibilities-yes or no (for example, corner location).
(2) A variable for which only two values are possible, such as results from a yes-or-no question, for example, Does this building have any fireplaces? Used in some models
to separate the influence of categorical variables. Also called a dichotomous variable or a dummy variable. See also continuous variable; discrete variable.
Binding Requirement
All or part of a standards rule of USPAP from which departure is not permitted.
Blanket Mortgage
A mortgage covering more than one property; used in, for example, subdivision development and cooperative apartment ownership.
Blended Model
A blended model (see Section 8.8: Value Reconciliation) is one where more than one modeling technique is used in deriving
the estimate of value. Typically, the technique involves running a hedonic model and a repeat sales index. The results are then compared and evaluated. Based on
each result, the blended model reports a final estimate of value. In addition to the hedonic model and repeat sales index, many blended models also include the results
of a tax-assessed value model.
Block
An urban area, usually consisting of several lots , enclosed on all sides by public streets or by public streets and a river,
a railroad right-of-way, or other more or less permanent boundary. Sometimes called a "Square."
Blueprint
A detailed plan used as a guide by workers on a construction project.
Board of Appeals
A public body (other than a court) charged with the duty of hearing and deciding appeals taken by taxpayers or tax districts
on assessments established by public officers or bodies other than the courts. Synonymous with "Board of Tax Appeals." Note: The decisions of such a board are subject to
further review by the courts on matters of law, but its findings are often made conclusive as to matters of fact. Compare board of equalization; board of review.
Board of Equalization
A public body (other than a court) having jurisdiction over two or more assessment districts which together make up a single
tax district, charged with the duty of examining the assessment rolls of several assessment districts, and empowered, on appeal or on its own initiative, to revise
assessments by district totals and/or by totals for particular classes of property. Compare board of appeals; board of review. Note: A board of equalization may also
be a board of review.
Board of Review
(1) A public body (other than a court)having jurisdiction over one or more assessment districts, charged with the duty
of examining the assessment roll or rolls, and empowered, on appeal or on its own initiative, to revise individual assessments (preferred). (2) Broadly, any such
board or any board of appeals or board of equalization.
Bootstrap
A computer-intensive method of statistical inference that is based on a repeated re-sampling of data to provide more information
about the population characteristics. The bootstrap is a data-driven procedure that is particularly useful for confidence interval approximation when no traditional
formulas are available or the sample has been drawn from a population that does not conform to the normal distribution.
Boundaries
The physical and/or man-made lines that define a parcel, subdivision, neighborhood, or district.
British Thermal Unit (BTU)
A unit of heat required to raise one pound of water one degree Fahrenheit.
Brownfield
An industrial or commercial site thats abandoned or underused because it suffers from real or perceived continuing contamination.
Build-up Method
The build-up method yields an overall capitalizationrate from two components. The building capitalization rate and the
land capitalization rate are weighted by the percentage of property value each represents and then added together to yield an overall rate.
Building Classification Schedule
A table giving standard specifications of a number of different typical buildings, classified according to use (such as
one-family dwelling or office building), type of construction (such as wood frame or steel frame), exterior wall materials (such as brick or stone), and other factors
affecting reproduction cost.
Building Cost Schedule
A table giving approximate reproduction costs per cubic foot, per square foot of floor area, or per square foot of ground area for each of the standard buildings in the building classification schedule.
Note: The building cost schedule must be supplemented by cost schedules for parts of a building, such as an oil heating system or air-conditioning system, to take care of situations in which a building has specifications differing in some detail
from those of the standard building.
Building Residual Technique
A capitalization technique used when land value is known and residual income to the building or improvement is capitalized to obtain the building or improvement value.
Building, Standard
A building that conforms precisely to the specifications of some one of the categories in the building classification
schedule or the cost schedule.
Bullet Loan
Gap financing offered when a construction loan has expired but permanent financing has not yet been found.
Bundle of Rights
The six basic rights associated with the private ownership of property: right to use; sell; rent or lease; enter or leave;
give away; and refuse to do any of these.
Buyer (Purchaser or Grantee)
The name of the party that purchased the property from the seller. There are no implied warranties in a grant deed, which is the instrument a Grantor signs transferring
title to the new buyer.
