Real Estate Valuation Glossary
The essential terms every investor, wholesaler, and flipper should know
From ARV and CMA to feature adjustments and statistical outliers — clear, plain-English definitions of the terminology that powers smarter real estate decisions.
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CMA & Reports
Comparative Market Analysis fundamentals and report structure.
Comparative Market Analysis (CMA)
A comprehensive report used by investors and real estate professionals to determine a property's value based on similar, recently sold properties. An AI CMA generates this report in minutes rather than hours.
Subject Property
The property being valued or analyzed. Every comp, adjustment, and projection in a CMA is anchored to the subject's specifications, location, and condition.
Sales Comparison Approach
The valuation methodology used by appraisers and AI tools that estimates value based on what similar properties have recently sold for, after adjusting for differences in size, condition, and features.
Days on Market (DOM)
The number of days between when a property was first listed and when it went under contract or sold. Lower DOM signals strong demand; longer DOM may indicate overpricing or condition issues.
Non-Disclosure State
A US state where final sale prices are not publicly recorded (e.g., Texas, Utah, Idaho, Kansas). Revaluno uses Automated Valuation Models (AVM) to estimate sale prices in these markets.
Comparables (Comps)
How comps are selected, ranked, and adjusted.
Artificial Intelligence Comparable Selection
The automated process of using algorithms to sift through hundreds of local property records to select the 3 to 6 most statistically relevant "comps" for a real estate deal, eliminating human emotional bias.
Close Comparable (Close Comp)
A recently sold property that closely matches the subject in location, square footage, beds/baths, age, and condition. Close comps are the highest-weighted data points in any valuation because minimal adjustments are required.
Comp Radius
The geographic distance (typically measured in miles) used to search for comparable sales around the subject property. Tighter radii produce more accurate values; wider radii are sometimes necessary in rural markets.
Statistical Outlier
A property sale that closed at an abnormally high or low price due to unique circumstances (e.g., a family discount or a massive, unpermitted addition). Revaluno's AI automatically flags and removes these to protect the integrity of your ARV.
Relisted Property
A property that was previously listed, withdrawn, and listed again. Revaluno prioritizes the historical sold price over relist price to avoid inflated comp data.
New Construction Comp (Proxy Comp)
For vacant lots and proposed builds, Revaluno selects newly built nearby homes as proxy comps to project the post-completion ARV of a planned construction project.
Waterfront Verification
Revaluno's process for confirming a property has true water frontage (vs. water view) using listing keywords, parcel data, and AI verification. Waterfront status materially impacts valuation.
Valuation & ARV
Pricing methodology, adjustments, and value ranges.
After Repair Value (ARV)
The estimated future value of a distressed or outdated property once it has been fully renovated to current market standards. AI calculates this by analyzing the sale prices of recently flipped or updated homes in the immediate vicinity.
Feature Adjustments
Dollar-value corrections applied to a comparable's sale price to account for differences from the subject property — such as an extra bedroom, a pool, waterfront access, a garage, or a finished basement. Proper adjustments normalize comps to an apples-to-apples valuation.
Price Per Square Foot ($/SQFT) Normalization
The mathematical process of adjusting comparable sales data so that a 2,000 sqft home can be accurately compared to a 2,200 sqft home without skewing the final valuation.
Confidence Range
The statistical low-to-high price band Revaluno generates for a property's value, derived from the spread of $/sqft across selected comps. A tighter range signals stronger market data.
Automated Valuation Model (AVM)
A statistical model that estimates a property's value using public records, tax data, and recent comparable sales. Revaluno uses AVMs to fill gaps in non-disclosure states.
Short-Term Rental (STR)
Airbnb / VRBO income projection terminology.
Short-Term Rental (STR) Analysis
The evaluation of a property's income potential on platforms like Airbnb or VRBO. For buy-and-hold investors, AI models project average daily rates (ADR) and seasonal occupancy percentages based on active competitor listings in the same zip code.
Average Daily Rate (ADR)
The average nightly rate a short-term rental earns across booked nights. ADR multiplied by occupancy yields projected gross revenue.
Occupancy Rate
The percentage of available nights a short-term rental is actually booked. A property with 70% occupancy is rented 21 of every 30 nights on average.
Put These Terms to Work
Generate full CMA reports with AI-selected comps and ARV estimates.
Calculate After Repair Value using comp data and AI adjustments.
Pull ranked comparable sales for any US property in seconds.
Project Airbnb/VRBO revenue with ADR and occupancy estimates.
Underwrite flips with ARV, rehab costs, and profit projections.
Deep dives on comping, ARV, STR analysis, and deal underwriting.
Ready to Apply These Concepts?
Run an AI-powered CMA on any US property in minutes — built on the principles defined here.