What does 'residential' mean in real estate?

In appraisal practice, "residential" refers to properties where people live. Residential appraisers work only on properties housing one to four units, such as single-unit homes and condominiums. Larger multiunit apartment buildings are generally treated as commercial for appraisal purposes, and commercial appraisers specialize in income-producing properties such as office buildings, hotels, and stores.

In New York appraisal licensing, "residential" refers to 1-4 family residential units. A State Certified Residential Real Estate Appraiser may appraise 1-4 family units without regard to value or complexity, along with vacant or unimproved land intended for 1-4 family use. The State Licensed category is narrower: it covers non-complex 1-4 family units with transaction value under $1,000,000 and complex 1-4 family units with transaction value under $250,000.