AVM Glossary

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  • The common or overall ratio of assessed val- ues to market values.
  • See cadastral map.
  • (1) The official act of the assessor in discov ering, listing, and appraising property for tax purposes up to the point at which the assessment roll is first filed for public inspec tion. (2) The act of assessment which first places a property on the assessment roll for the particular assessment date; the agency that performs this act is the original assessing agency (or jurisdiction). (3) The valuation at which property is listed in the assessment roll at the time it is first filed for public inspection.
  • (1) The period beginning with the assessment date and ending with the date on which the assessor is required to complete the original assessment. (2) Sometimes used synony mously with assessment year.
  • An appraisal bias such that high-value properties are appraised higher (or lower) than low-value properties in relation to market values. See price-related differential.
  • (1) The fractional relationship an assessed value bears to the market value of the property in question. (2) By extension, the fractional relationship the total of the assessment roll bears to the total market value of all taxable property in a juris diction. See level of assessment and fractional assessments.
  • An investigation intended to determine the assessment ratio and assessment equity.
  • An assessment made after the close of a tax year on property that was legally assessable, but was not listed for taxation during such year.
  • The basis on which the property tax levy is al located among the property owners in a jurisdiction with taxing powers. The assessment roll usually lists an identifier for each tax able parcel in the jurisdiction, the name of the owner of record, the address of the parcel or the owner, the assessed value of the land, the assessed value of the improvements, applicable exemption codes, and the total assessed value. Synonyms include "cadastre," "list," "grand list," "abstract of ratables," and "rendition."
  • The ratio of the assessed value to the sale price (or adjusted sale price) of a property.
  • A system of property tax assessments based largely on the uniform application of established rules and principles. Note: Standardized assessment is usually manifested by the use of land value maps, depth and corner influence tables, building classification and cost schedules, reproduction cost and depreciation schedules, and the like.
  • Valuation of a property in a specified use at an amount specified by law (for example, a golf course will be assessed at ten dollars per acre); most often used for mineral prop erties and open space.
  • (1) A year beginning on the day after the assessment date and ending on the assessment date in the calendar year next following. (2) The 365 days beginning with the appraisal date.
  • (1) The head of an assessment agency; sometimes used collectively to refer to all administrators of the assessment func tion. (2) The public officer or member of a public body whose duty it is to make the original assessment.
  • Characteristic of a property.
  • A systematic investigation or appraisal of procedures or operations for the purpose of determining conformity with specifi cally prescribed criteria.
  • The procedures undertaken or particular work done by an accountant in conducting an examination.
  • A set of records of the changes made to another set of records.
  • An automated valuation model (AVM) is a mathematically based computer software program that produces an estimate of market value based on market analysis of location, market conditions, and real estate characteristics from information that was previously and separately collected. The distinguishing feature of an AVM is that it is a market appraisal produced through mathematical modeling. Credibility of an AVM is dependent on the data used and the skills of the modeler producing the AVM.
  • The arithmetic mean.
  • See average deviation.
  • The arithmetic mean of the absolute devia tions of a set of numbers from a measure of central tendency, such as the median. Taking absolute values is generally understood without being stated. The average deviation of the numbers 4, 6, and 10 about their median (6) is (2 + 0 + 4) ÷ 3 = 2. The average deviation is used in computing the coefficient of dispersion (COD).
  • With an AVM-assisted appraisal, an experienced state-licensed or state-certified appraiser develops a USPAP-compliant appraisal based on the results of a reliable AVM.
  • A process that uses a ranking of AVMs (aka “Model Preference Table”®) in conjunction with user-defined logic to determine when to accept an AVM value or go to the next model in the ranking.

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/)