In the spirit of continuous improvement, we appreciate your feedback: Mail@avmetrics.net
r
- Replacement Cost New Less Depreciation (RCNLD)In the cost approach, replacement cost new less physical incurable depreciation.
- Replacement Cost; Replacement Cost New (RCN)The cost, including material, labor, and overhead, that would be incurred in constructing an improvement having the same utility to its owner as a subject improvement, without necessarily reproducing exactly any particular characteristics of the subject. The replacement cost concept implicitly eliminates all functional obsolescence from the value given; thus only physical depreciation and economic obsolescence need to be subtracted to obtain replacement cost new less depreciation (RCNLD).
- Representative SampleA sample of observations from a larger population of observations, such that statistics calculated from the sample can be expected to represent the characteristics of the population being studied.
- Residence(1) A domicile. (2) A domicile at which a person is actually dwelling. (3) A dwelling place, whether or not it constitutes a domicile (preferred). Note: Ordinarily, in the law of taxation, "residence" means "domicile" unless a contrary meaning is specified or is indicated by the context.
- Residential (nonfarm) MultifamilySee Property.
- Residential (nonfarm) Single FamilySee Property.
- Residential PropertyReal property that might be vacant land or an improved parcel of land devoted to or available for residential use. See property use category.
- ResidualThe difference between an observed value and a predicted value for a dependent variable.
- Residual TechniqueA method of arriving at the unknown value of a property component by subtracting the known values of other components from a known overall value.
- Residual ValueThe value of the property after cleanup of environmental contamination. This may be more or less than the original value depending on counterbalancing effects of stigma and improvements to plant efficiency.
- Result CodeMost AVMs return a result code that explains the outcome of each submission. For instance, result codes should identify when a successful valuation was returned, why a valuation was obtained but not returned (e.g., the value fell below the model’s minimum confidence score thresholds), or why a valuation was not obtained (e.g., ‘unable to verify address’ or ‘invalid property type’).
- Retrospective (“Retro”) ValuationEstimate of Value for subject property at a point in time in the past utilizing data prior to a specified date of stated value.
- Root Mean Square (RMS)The square root of the average value of the sum of the squares of the differences between values in a set and the corresponding values that have been accepted as correct or standard. Used to measure map accuracy.
- RT20Right Tail > 20% or “RT20” is the percentage of properties whose AVM valuation exceeds its corresponding selling price by more than 20 percent. RT20 indicates the potential overvaluation that can expose a lender to more risk than factored into an original loan-to-value ratio (typically 80 percent).
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/)