Appraiser Jargon
Heard Richard use one of these terms and wondered what it meant? Every profession has its own
shorthand — what "res ipsa loquitur" is to a lawyer, "external obsolescence" is to an
appraiser. Here's a plain-English guide to the terms that come up most often.
Adjustment
Once comparable properties are identified, the appraiser adjusts the value of the subject
property to account for differences in living area, acreage, frontage, amenities, and more.
This is where real professional expertise matters most.
Chattel
Personal property that may be on the subject property but doesn't factor into the opinion
of value in the appraisal report.
Comparable ("comp")
A property similar to the subject property that has sold recently nearby, used as a basis
for determining fair market value. USPAP sets clear guidelines for what qualifies as a
comparable.
Drive-By
An appraisal limited to reviewing comparable sales and confirming the property exists with
no obvious exterior defects or damage. Fannie Mae's form for this type is the 2055, so you may
hear it called simply "a 2055."
Fair Market Value
The appraiser's opinion of value, reflecting what a willing seller would accept from a
willing buyer in an arm's-length transaction.
GLA
"Gross Living Area" — the total above-grade floor space, including stairways and
closet space, typically measured from exterior wall dimensions.
Latent Defects
A defect that isn't readily apparent but that impacts fair market value — structural
damage or termite infestation are common examples.
MLS
Multiple Listing Service — a database of properties on the market, their asking
prices, and recent closed sales. Most appraisers pay for MLS access to support comparable
selection and adjustment research.
Obsolescence
A decline in value as a feature becomes less desirable, either because it's outdated
(functional obsolescence) or because changes in the surrounding area make it less appealing
(external obsolescence).
Subject
Short for the property being appraised — "the subject property."
Useful Life
The span of time during which a property can continue to provide benefit to its owner.
URAR
Uniform Residential Appraisal Report, Fannie Mae Form 1004 — the standard form most
lenders require for a full appraisal with a walk-through inspection.
USPAP
Uniform Standards of Professional Appraisal Practice — the rulebook that governs
professional appraisal conduct, maintained by the Appraisal Foundation and frequently written
directly into state law.
Walk-Through
An inspection that includes visiting every part of the home's interior used in estimating
value.
Have a Term You Didn't See Here?
Richard's happy to explain anything in your report, plain and simple.
Call (727) 331-0829
