Façade – the main exterior face of an improvement.

Federal Home Loan Mortgage Corporation (FHLMC) (Freddie Mac) – an organization that facilitates secondary residual mortgages, for savings and loan associations, to increase availability of residential mortgage financing.

Federal National Mortgage Association (FNMA) (Fannie Mae) – a quasi-governmental agency that purchases mortgages from originators; intended to increase liquidity in the home mortgage market.

Fee Appraisal – appraisal of properties one at a time for pay.

Fixture – (1) attached improvements that can be real or personal property. If attached to the realty in such a manner that if its removed would damage the property it has become part of the real property. If a fixture is removable without real damage it is considered personal property. (2) an item of equipment that based on the way it is used and/or attached it has become an integral part of a building or other improvement such as a bathtub.

Foreclosure – the legal process by which a lien on a property is enforced.

Functional Obsolescence – loss in value of a property resulting from changes in tastes, preferences, technical innovations or market standards.

Future Gross Income – the estimated gross income for a particular future year.

Future Net Income – the estimated net income for a particular future year.

G

Government National Mortgage Association (GNMA) (Ginnie Mae) – a government owned and government financed agency that subsidizes mortgages through its secondary mortgage market and issues federally insured mortgage-backed securities. This agency falls within the Department of Housing and Urban Development.

Grant Deed – see Deed, Grant.

Grantee – one who acquires property by voluntary conveyance.

Grantor – one who voluntarily conveys property, whether by sale, gift, lease or otherwise.

Grantor Index – lists alphabetically the name of every grantor whose name appears on a deed recorded for the year the index covers.

Gross – the total units with no allowances or deductions.

Gross Assessed Value – the official dollar value listed on an assessment roll, including any partial exemptions.

Gross Income Multiplier (GIM) – a capitalization technique that uses the ratio between the sale price of a property and its potential gross income or its effective gross income. Once calculated for several similar assets, a GIM may be multiplied against the income of a property to obtain an estimate of value.

Gross Leasable Area – all area within the outside walls, including lobbies, washrooms, janitor’s closets, and so on, but excluding building stairs, fire towers, elevator shafts, flues, vents, stacks, pipe shafts, and vertical ducts if they serve more than one floor.

Gross Rent Multiplier (GRM) – (1) the factor by which gross rent is multiplied in order to obtain an estimate of value. (2) the ratio between sale price and potential gross income or effective gross income. By convention, the gross rent multiplier is typically the term used when developing the relationship based on monthly rent.

H

Heirs – those who are entitled by law to inherit the property of a deceased person.

Highest and Best Use – a principle of appraisal and assessment requiring that each property be appraised as though it were being put to its most profitable use, given probable legal, physical and financial constraints.

Historical Age – the number of years elapsed since an original structure was built. Synonyms are actual age and chronological age.

Holding Period – the length of time an investor expects to own a given property before selling it to someone else.

Homestead – a building occupied by the owner of the freehold and his or her family, with the primary intention of making it their home, together with the parcel of land on which it stands and the other improvements appurtenant to it.