Skip to main content

Appraisal Dictionary

A

  • Adjustment: A modification to the value of a comparable property to account for differences between it and the subject property.
  • Appraisal: An opinion of value supported by evidence and analysis.
  • Attached 2nd Story Deck: A feature that is an elevated deck positioned on the second level.
  • Attached 2nd Story Porch: A feature that is an elevated covered area on the second level.
  • Attached 2nd Story Util: A feature that is a utility room located on the second floor.
  • Attached 3rd Story Porch: A feature that is an elevated covered area on the third level.
  • Attached Deck - 3rd Level: A feature that is an elevated deck positioned on the third level.
  • Attached Garage: A feature that is a vehicle storage area connected to the main house.
  • Attached Open Porch: A feature that is a covered entry/sitting area.
  • Attached Utility: A feature that is a connected storage/utility room.
  • Attached Utility 3rd Floor: A feature that is a utility room located on the third floor.
  • Attached Wood Deck: A feature that is a wood platform connected to the house.
  • Average CDU: Identifies homes that exhibit some evidence of deferred maintenance and normal obsolescence with age. Updates and upgrades may be needed, along with some refinishing and repairs. All major components are still functional and contribute toward an extended life expectancy. Desirability and utility are typical of comparable properties. See CDU for more information.

B

  • Bath House: A feature that is a structure with bathroom facilities.

C

  • Canopy: A feature that is a covered open-sided structure for weather protection.
  • CDU score: CDU stands for Condition, Desirability, and Utility. The CDU score helps determine how well a property is maintained, how appealing it is in the market, and how functional it remains compared to newer properties. A home's CDU will be one of the following: Excellent, Good, Average, Fair, or Poor. See the definition of these respective classifications for more information.
  • Classification: Quality classification refers to evaluating a property's overall construction quality, materials, and workmanship. It differs from a home's CDU because it only focuses on overall construction quality. For example, a well-constructed, brick home built at the turn of the century can have an Excellent quality class but a Poor CDU if it has been allowed to deteriorate with no maintenance. There are twelve quality classifications: low, fair, average, good, very good, excellent, and Special 1 to 6.
  • Class Low: A quality classification of residences that identifies them as low-cost and meeting only "minimum" building code requirements. New construction in this class is rare. Windows will be few and small. Porches and overhangs will be minimal. Exteriors will be inexpensive panels or siding. Usually, there will only be one exterior door. Plumbing and electrical will be minimal, with cheap fixtures. Roof slope and material will be minimal.
  • Class Fair: A quality classification of residences that identifies them as "adequate." Construction is no longer minimal but is considered adequate. The front elevation will have some inexpensive trim. Exteriors will include wood plank, stucco, and brick veneers on a portion of the house. Electrical and plumbing will be standard with cheap fixtures. Porches and overhangs will be similar in construction to the rest of the house. The roof pitch will be steeper, and the material will be standard grade.
  • Class Average: A quality classification of residences that identifies them as having "acceptable" workmanship. Houses in this class are usually mass-produced with stock materials. Roof slopes will increase, as will the overhangs and complexity of the roof style. Better fenestration and ornamental trims are found on the street exposures. House shapes will be rectangular to "L" shapes with some corners and indentations that add to the cost.
  • Class Good: A quality classification of residences that identifies them as "above average" in workmanship or built for an individual owner. Good quality standard materials are used throughout. Some attention is given to architectural design in both refinements and detail. Exteriors have good fenestration with ornamental features and materials. Houses in this class are generally larger, with more complex shapes and roof styles than average-class houses.
  • Class Very Good: A quality classification of residences that identifies them as "high quality" in workmanship and in sub-divisions of individually designed homes. Many will resemble houses in the Good Class but will have more attention to detail and design. Exteriors will have good fenestration with custom ornamentation. Irregular shapes and angles are common with matching roof styles and large eaves and overhangs.
  • Class Excellent: A quality classification of residences that identifies them as custom, designer homes, characterized by a high level of quality in materials and workmanship throughout. While not a mansion, the Excellent Class house is a very gracious residence. Special attention is given to the quality and quantity of features and ornamentation. Good and Very Good Class houses will have rooms with raised ceilings, while Excellent Class houses usually will have high ceilings throughout. The exterior will have well-designed, high-quality fenestration with custom ornamentation. Select brick, cut stone, and high-quality siding will be used. Metal and tile roof materials are typical.
  • Class Special through 6: A quality classification of residences that identifies them as luxurious homes built without regard to cost. Each is individually designed with the best materials, workmanship, finishes, and appointments. Great rooms, media rooms, studies, and even observatories are typical in these classes. Multiple fireplaces are common. A bathroom count exceeding the bedroom count is typical. The very best fenestration, custom multi-story entries, and porte-cocheres are common. Most have metal or tile roofs with exceptional flashing, gutters, and downspouts. Determining the class level is often a matter of comparison. The higher classes will be populated by the largest houses with the most features. Historical and older houses will sometimes have an architectural pedigree. It is important to note that each mansion's quality house is unique in its design, and nationwide marketing is often employed to find the right buyer for a particular house.
  • Comparable Sales (Comps): Properties similar to the subject property that have recently sold, used to estimate the value of the subject property.
  • Cooling Systems: Most Texas appraisal districts assume every home has an artificial cooling system, such as window units, central air-conditioning systems, evaporative coolers, whole-house fans, or ductless mini-split systems (also known as packaged terminal air conditioners).
  • Cost Approach: A method of estimating property value based on the cost to construct a similar property minus depreciation plus land value.

D

E

  • Elevator Med 2 Stop: A feature that is a medium-sized 2-floor elevator.
  • Elevator Med 3 Stop: A feature that is a medium-sized 3-floor elevator.
  • Elevator Small 2 Stop: A feature that is a small 2-floor elevator.
  • Elevator Small 3 Stop: A feature that is a small 3-floor elevator.
  • Enclosure: A feature that is an enclosed addition at ground level.
  • Enclosure - 2nd Level: A feature that is an enclosed addition on the second floor.
  • Enclosure - 3rd Level: A feature that is an enclosed addition on the third floor.
  • Equipment Shed: A feature that is a storage area for machinery/lawn equipment.
  • Excellent CDU: Identifies new or nearly new homes, including updates and upgrades. All items, such as plumbing, wiring, exterior, roofing, HVAC, paint, appliances, etc., that can typically be repaired or replaced have been corrected or recently built. Long-lived major components are functional and contribute toward an extended life expectancy. No functional inadequacies of any consequence are observed, and the property exhibits the highest level of desirability and utility. See CDU for more information.

F

  • Fair CDU: Identifies homes that need considerable maintenance, refinishing, and renovation. Deferred maintenance is obvious and is starting to affect the major structural items, which may be starting to fail. Inadequate desirability and utility may also be affecting the property. See CDU for more information.
  • Features: A term to describe a built improvement added and fixed to land. Feature is a term that captures a lot of different improvements. For example, it includes the home's living area, porch, garage, swimming pool, and carport.
  • Fee Simple: Absolute ownership of property, unencumbered by any other interest or estate.
  • Fireplaces: Appraisal districts typically recognize fireplaces made of masonry (brick/stone) or prefabricated/metal, in addition to gas log fireplaces. They sometimes count wood-burning stoves as fireplaces. Each fireplace opening is counted separately. Double-sided fireplaces typically count as one fireplace. Fireplace must have a permanent chimney/flue. They must be functional and properly vented, meeting local building codes. Features not counted as fireplaces include decorative non-functioning fireplaces, portable fireplace units, electric fireplaces that don't require venting, and fire pits (indoor or outdoor).
  • Fitness Center: A feature that is an exercise facility.
  • Full Baths: Contain at least three fixtures: toilet, sink, and shower or bathtub.
  • Functional Obsolescence: A flaw in the structure, materials, or design of a building that diminishes its value.
  • Foundation: Appraisal districts classify the type of foundation supporting most, if not all, of your home. The types of foundations recognized include the following: Basement or continuous wall, Earth, Piers or posts, Slab.

G

  • Good CDU: Identifies homes that appear well-maintained but not new, with many having been overhauled or repaired as wear occurred. Little deferred maintenance is evident, and there is a high degree of desirability and utility. See CDU for more information.

H

  • Half Baths: Contain only two fixtures, typically: toilet and sink.
  • Heating system: Appraisal districts recognize the following types of heating systems: Central air conditioning (a catch-all category), Electric furnace, Forced air gas furnace, Floor furnace or wall heaters, Hot water systems, Solar heating systems (active or passive solar), Heating units (Packaged Terminal Air Conditioner with heat).
  • Highest and Best Use: The reasonably probable and legal use of property that results in the highest value.
  • Horse Barn: A feature that is a structure designed for housing horses with stalls.

I

  • Implement Shed: A feature that is a storage area for farm/ranch/gardening equipment.
  • Income Approach: A method of estimating property value based on the income the property generates. This approach is used for commercial properties.

L

  • Land Area: Land Area refers to the total square footage of the land that defines your property. This information is collected from property deeds. Inaccuracies in land areas are rare but may occur if the square footage was incorrectly measured or inputted or if a change in the property area was not updated, leading to an overvalued or undervalued appraisal.
  • Living Area: Texas appraisal districts typically define living area (also called living space or gross living area) as finished, above-grade heated and cooled space. Areas that are suitable for year-round occupancy and that are directly accessible from other living areas. This definition excludes detached backyard apartments because they are not directly accessible from other living areas due to their detached nature.
  • Living Area SQFT: The total number of square feet of living areas, measured from exterior walls and calculated to the nearest square foot. If a home has multiple stories, measurements should be made per floor and totaled. Stairways are counted on each level they serve.

M

  • Market Value: The most probable price a property should bring in a competitive market under normal conditions.
  • Misc Det Value: A feature that is a miscellaneous detached structure with value.

N

O

P

  • Poor CDU: Identifies homes that exhibit excessive deferred maintenance pervasive throughout the structure. Demolition and reconstruction may be more cost-effective than renovation and repair. While occupancy is not excluded, desirability and utility are minimal. See CDU for more information.
  • Poultry House: A feature that is a structure designed for housing poultry.

Q

  • Quality Classification: Quality classification refers to evaluating a property's overall construction quality, materials, and workmanship. It differs from a home's CDU because it only focuses on overall construction quality. For example, a well-constructed, brick home built at the turn of the century can have an Excellent quality class but a Poor CDU if it has been allowed to deteriorate with no maintenance. There are twelve quality classifications: low, fair, average, good, very good, excellent, and Special 1 to 6.

R

  • Res/Greenhouse: A feature that is a structure for growing plants.
  • Residential Misc Shed: A feature that is a general-purpose storage building.
  • Roof Cover Material: Appraisal districts classify the type of roofing material covering most, if not all, of your home. The materials they recognize include the following: Asphalt shingles, Concrete, Composite roll, Concrete tile, Metal, Inexpensive metal (typically corrugated steel, agriculture-grade, light gauge metal), Plastic tile, Build up tar and gravel, Tile, Wood cover, and Other materials.

S

  • Sales Comparison Approach: A method of estimating property value by comparing it to similar properties that have recently sold.
  • Shed: A feature that is a basic storage building.
  • Shed (1 side open): A feature that is a three-sided storage structure.
  • Shed (4 sides open): A feature that is a covered structure with no walls.
  • Spa: A feature that is a water therapy installation, also known as a hot tub or Jacuzzi.
  • Stable: A feature that is a structure for housing horses.
  • Stories: Appraisal districts classify homes based on their number of stories. Stories are a key factor in determining home values.
  • Subject Property: The property being appraised.
  • Swimming Pool: A feature that is an in-ground swimming facility.

T

Y

  • Year Build: The number of years that have elapsed since construction of a building was completed.