INDUSTRY TERMINOLOGY
Appraiser Jargon
A glossary of common appraisal terms
- Chattel
- Personal property that may be on the subject property but which does not figure into the opinion of value.
- Comparable (or "Comp")
- Properties similar to the subject property nearby which have sold recently, used as a basis to determine fair market value.
- Drive-By Appraisal
- An appraisal limited to an exterior-only examination of the subject property.
- Fair Market Value
- The appraiser's opinion of value reflecting what a willing buyer would pay a willing seller in an arm's-length transaction.
- GLA (Gross Living Area)
- The sum of all above-grade floor space in a residential property.
- Latent Defects
- A defect on the property that is not readily apparent but impacts fair market value.
- MLS (Multiple Listing Service)
- A database listing all properties on the market and recent closed sales in a given area.
- Obsolescence
- The decrease in value that occurs as capabilities degrade or more desirable alternatives become available.
- Subject
- The property being appraised.
- USPAP
- Uniform Standards of Professional Appraisal Practice — the nationally recognized standards that promote ethics and professionalism in appraisal practice.
- Walk-Through
- An inspection that includes a visit to each part of the interior of the home.