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t
- Total Economic LifeThe period of time or units of production over which the operation of an asset is economically feasible, not necessarily the same as its physical life.
- Training DatasetThe dataset used to fit (estimate the parameters of) a model (AVM). See also "Sample," "Representative Sample" and "Population."
- Transaction TypeThe transaction associated with the Reference Value (e.g. purchase, cash-out refinance, rate-term refinance).
- TrendingAdjusting the values of a variable for the effects of time. Usually used to refer to adjustments of assessments intended to reflect the effects of inflation and deflation and sometimes also, but not necessarily, the effects of changes in the demand for microlocational goods and services.
- Trending FactorA figure representing the increase in cost or selling price over a period of time. Trending accounts for the relative difference in the value of a dollar between two periods.
- Trimmed MeanThe arithmetic mean of a data set identified by the proportion of the sample that is trimmed from each end of the ordered array. For example, a 10 percent trimmed mean of a sample of size ten is the average of the eight observations remaining after the largest and smallest observations have been removed.
- Two-Tailed TestA test in which the alternative hypothesis does not specify the direction of the relationship, as opposed to a one-tailed test, in which the direction of relationship is specified. For example, the alternative hypothesis that "A does not equal B" implies a two - Tailed test, whereas "A is greater than B" implies a one-tailed test. See Null Hypothesis.
u
- U-TestSee Mann-Whitney test.
- UncertaintyParameter uncertainty happens because we don't know the exact, or "best" values in a population. We can only take a good guess based on sampling. Uncertainty in statistics is measured by the amount of error in an estimate of the mean or average value of a population.
- UnderimprovementAn improvement that does not develop a site to its highest and best use; usually a violation of the principle of conformity. Contrast overimprovement.
- Uniform Standards of Professional Appraisal PracticeAnnual publication of the Appraisal Standards Board of The Appraisal Foundation: "These Standards deal with the procedures to be followed in performing an appraisal, review or consulting service and the manner in which an appraisal, review or consulting service is communicated. . . .Standard 6 sets forth criteria for the development and reporting of mass appraisals for ad valorem tax purposes or any other universe of properties" (p. 1).
- Unweighted MeanA mean in which each value is considered only once. See weighted mean.
- Usable Hit RateThe percentage of valuations returned by an AVM that meet the organization’s predetermined acceptance criteria - usually related to predictive accuracy or confidence score. For example, suppose a user defines a successful valuation as a value estimate that is within plus or minus 15% of its corresponding benchmark. If 500 of the 600 returned values from a total sample of 1000 properties met the user’s definition of an acceptable valuation, then the usable hit rate would be expressed as 500/1000 or 50%.
- Usage RulesRules that establish when a particular AVM is appropriate for use. These policies frequently include property and transaction-related restrictions (e.g., FICO score, LTV, etc.).
- Use Class(1) A grouping of properties based on their use rather than, for example, their acreage or construction. (2) One of the following classes of property: single-family residential, multifamily residential, agricultural, commercial, industrial, vacant land, and institutional/exempt. (3) Any subclass refinement of the above for example, townhouse, detached single-family, condominium, house on a farm, and so on. See property use category.
- Use CodeA code (used on a property record form) to indicate a property's use class or, less often, potential use.
- Use, Highest and BestSee highest and best use.
- Use Value(1) The value of property in a specific use. (2) Property entirely used for a specific purpose or use that may entitle the property to be assessed at a different level than others in the jurisdiction. Examples of properties that may be assessed at use value under the statutes include agricultural land, timberland, and historical sites. Compare value in use.
- Useful LifeEstimated normal operating life in terms of utility to the owner of a fixed asset or group of assets.
- USPAPSee Uniform Standards of Professional Appraisal Practice
- Utility(1) The quality of a property or service that enables it to satisfy human wants. (2) The satisfaction obtained from the goods and services that a consumer consumes.
v
- ValidityThe quality of a data element or procedure being what it should be in terms of some ultimate purpose or use. See integrity. Compare accuracy, precision.
- Valuation(1) The process of estimating the value -- market, investment, insured, or other properly defined value -- of a specific parcel or parcels of real estate or of an item or items of personal property as of a given date. (2) The process or business of appraising, of making estimates of the value of something. The value usually required to be estimated is market value.
- Valuation Acceptance CriteriaCriteria for determining the acceptability of a value estimate generated by a particular AVM. These policies are model-specific and usually consider confidence score thresholds or forecast standard deviations (FSD), as well as the organization’s risk appetite.
- Valuation, AssessedSee assessed value.
- Valuation DateThe specific date as of which assessed values are set for purposes of property taxation. This date may also be known as the "date of finality." See assessment date.
- Valuation MethodA specific process used in a Model that estimates a value for a property.
- Value, ActualMarket value, especially as distinguished from the so-called book, par, or face values.
- Value, CashMarket value in terms of cash.
- Value, ExchangeSynonymous with the preferred term "market value."
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/)