AVM Glossary

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  • Information expressed in any of a number of ways. "Data" is the general term for masses of numbers, codes, and symbols generally, and "information" is the term for meaningful data. "Data" is the plural of datum, one element of data.
  • The process of examining recorded data to ensure that each element of data is reasonable and is consistent with others recorded for the same object, such as a parcel of real estate. Data editing, which may be done by human beings or by computer, is essentially a mechanical process, distinct from verifying the correctness of the recorded information by calling or writing property owners.
  • The human (and sometimes computer) procedures employed to ensure that no information is lost through negligent handling of records from a file, that all information is properly supplemented and up-to-date, and that all information is easily accessible.
  • See assessment date.
  • The effective purchase date of an asset. From the date of acquisition, the asset must appear in the accounts and in financial statements, and depreciation, if any, must be recorded.
  • The date on which the sale is agreed. This is considered to be the date the deed, or other instrument of transfer, is signed. The date of recording can be used as a proxy if it is not unduly delayed as in a land contract.
  • The minimum loan amount for which the federal banking agencies require a real estate appraisal. In 2019, the de minimis threshold was increased to $400,000. All real estate-related transactions originated or purchased by a federally regulated lending institution where the loan amount exceeds $400,000 require a USPAP-compliant real estate appraisal performed by a state-licensed or state-certified appraiser.
  • Repairs and similar improvements that normally would have been made to a property but were not made to the property in question, thus increasing the amount of its depreciation.
  • In a fraction, the number by which another number (the numerator) is divided. For example, the denominator of 3/4 is 4.
  • A variable, such as sale price, the value of which is predicted by the values of other variables, such as location and finished living area. Such a variable may be said to depend on the other (independent) variables.
  • Loss in value of an object, relative to its replacement cost new, reproduction cost new, or original cost, whatever the cause of the loss in value. Depreciation is sometimes subdivided into three types: physical deterioration (wear and tear), functional obsolescence (suboptimal design in light of current technologies or tastes), and economic obsolescence (poor location or radically diminished demand for the product).
  • (1) The branch of the science of statistics that is concerned only with characterizing or describing a set of data (numbers). (2) By extension, the measures used to characterize a particular set of data. Compare inferential statistics.
  • See binary variable.
  • Data displayed, recorded, or stored in binary notation.
  • An image having numeric values representing tones. Each numeric value represents a different tone.
  • One of two formats of the sales comparison approach to value (the other being the Comparable Sales Method). In the direct market method, the market analyst specifies and calibrates a single model used to estimate market value directly using multiple regression analysis or another statistical algorithm.
  • Direct market models analyze how various housing characteristics influence sales prices in a particular period and geographic area. These models typically describe market value as a function of a property’s location and physical attributes. Direct market models are noted for their superior accuracy compared to other approaches; however, their substantial data requirements often result in a lower percentage of usable valuations, as many states lack sufficiently detailed property records to fuel this type of AVM. Hedonic models are location-specific and therefore difficult to generalize(...)
  • Discrete data are qualitative items that have three or more predefined values (for example, topography: level, rolling, or steep).
  • A variable for which it is not conceivable that, given any two observed values, a value lying between them may occur. For example, the number of rooms in a house is a discrete variable, but the living area of the house is not. See binary variable and continuous variable.
  • The degree to which data are distributed either tightly or loosely around a measure of central tendency. Measures of dispersion include the average deviation, coefficient of dispersion, coefficient of variation, range, and standard deviation.
  • A set of robust nonparametric methods whose interpretation or reliability does not depend on stringent assumptions about the distribution of the underlying population from which the sample has been drawn. See parametric statistics.
  • See binary variable.

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/)