AVM Glossary

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  • The act or process of estimating value or an estimate of value performed without invoking the departure provision (USPAP).
  • The appraisal emulation model that 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.
  • The act or process of estimating value or an estimate of value performed under and resulting from invoking the departure provision (USPAP).
  • The three methods of appraisal, that is, the cost approach, income approach, and sales comparison approach.
  • The economic concepts underlying appraisal. See under principle of: anticipation, balance, change, conformity, contribution, and substitution. See competition; demand; highest and best use; and variable proportions, law of.
  • (1) The ratio of the appraised value to an indicator of market value. (2) By extension, an estimated fractional relationship between the appraisals and market values of a group of properties. See level of appraisal.
  • The oral or written communication of a completed appraisal.
  • The ratio of the appraised value to the sale price (or adjusted sale price) of a property; a simple indication of appraisal accuracy.
  • To make an estimate of value, particularly of the value of property.
  • The estimate of the value of a property before application of any fractional assessment ratio, partial exemption, or other adjustments.
  • See Comparable Sales Model.
  • Increase in value of a property, in terms of money, from causes other than additions and betterments. For example, a farm may appreciate if a shopping center is built nearby, and property of any sort may appreciate as a result of inflation. Contrast depreciation.
  • See floor area of building.
  • See ground area of building.
  • (1) A sale between a willing buyer and a willing seller that are unrelated and are not acting under duress, abnormal pressure or undue influences. (2) A sale between two unrelated parties, both seeking to maximize their positions from the transaction.
  • An ordered arrangement of data, such as a listing of sales ratios, in order of magnitude.
  • (1) A value set on real estate and personal property by a government as a basis for levying taxes. (2) The monetary amount for a property as officially entered on the assessment roll for purposes of computing the tax levy. Assessed values differ from the assessor's estimate of actual (market) value for three major reasons: fractional assessment ratios, partial exemptions, and decisions by assessing officials to override market value. The process of gathering and interpreting economic data to provide information that can be used by policymakers to formulate tax policy.
  • (1) In general, the official act of determining the amount of the tax base. (2) As applied to property taxes, the official act of discovering, listing, and appraising property, whether per formed by an assessor, a board of review, or a court. (3) The value placed on property in the course of such act.
  • One of a small number of non-market assessment valuation standards. A property is placed on the tax roll at its acquisition cost; that value is not changed until the next qualifying sale, as, for example, under California's Proposition 13.
  • The ratio of the assessed value of a property to an independent appraisal.
  • (1) Assessment without consideration of such information as is reasonably available to the assessor. (2) Assessment according to the "best knowledge and belief" of the assessor when a person fails to list property in accordance with law (a usage not recommended). Note: Although this term is commonly used by assessors in the second of these senses to refer to a legal assessment, the courts commonly use it in the first sense to mean an illegal assessment. Compare assessment, Doomage.
  • One of a small number of nonmarket assessment valuation standards. A property is placed on the tax roll at a value reflecting the land area or the surface area (floor area) of an improvement.
  • An original assessment made by an officer or body whose jurisdiction with respect to the property so assessed extends over two or more local assessment districts.
  • The status date for tax purposes. Appraised values reflect the status of the property and any partially completed construction as of this date.
  • The administrative area in which the officer or public body responsible for making the original assessment has jurisdiction. Note: The local assessment district is usually cotermi nous with a county, township, or city, but the state itself may be the assessment district for some types of property.
  • An assessment made without adequate information when a taxpayer fails to comply with laws requiring him or her to list his or her property for taxation. Compare assessment, arbitrary; assessment, penalty.
  • The degree to which assessments bear a con- sistent relationship to market value.
  • Assessment at a fraction of full value, or of such other standard as may be fixed by law. Note: Fractional as sessment may constitute underassessment, or it may be sanctioned by law as, for example, in Alabama, where all property is legally assessable at 60 percent of full value, and in Minnesota, where various classes of property are assessable at various percentages of full value.
  • An assessment made out of the regular routine when there is reason to believe that adherence to such routine will jeopardize the collection of taxes on the property so assessed.
  • A geographical area within which an assessing officer has the responsibility to determine the assessed value of property for ad valorem taxation.

Sources:

a)       AVMetrics

b)      AVMs 201: A Practical Guide to the Implementation of Automated Valuation Models, Jim Kirchmeyer, 2008.

c)       IAAO 2015, Glossary for Property Appraisal and Assessment, 2015. (2013 online: https://www.iaao.org/media/Pubs/IAAO_GLOSSARY.pdf )

d)      Collateral Assessment & Technologies Committee, Summary of Definitions & Terms, 2006.

e)      Joint Industry Task Force on AVMs, IAAO Standard on AVM Glossary, September 2003. https://www.iaao.org/media/standards/AVM_STANDARD.pdf

f)        Appraisal Institute, Joint Industry Task Force on Automated Valuation Models, Work Group Terminology, 2005.

g) Merriam-Webster (https://www.merriam-webster.com/)