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Appraiser jargon

 

*Warning*  The below meanings are not intended to be utizilized in everyday business.

 

 

Adjustment.  The dollar amount needed to make the subject appear to be worth what it is being appraised at.

 

Appraisal.    Any house, any value

 

Capitalization Rate - The number which is arrived at by dividing the number the client wants by the net operating income.    

 

Comparable or "comp”.  Any house that supports target value. 

 

Drive-by.  Appraisal being completed on a rainy day.

 

Fair market value.  Whatever the Offer to Purchase states.  The appraisal should always be in agreement with whatever the Real Estate Agent feels the property is worth. 

  

GLA.  A little square footage over here, a little over there.

 

Highest and Best Use - Whatever the person who is paying for the appraisal wants to do with the property.

Market Value - Formerly, one sentence which covered the bases pretty well. Now, a page of explanation, some of which appears to be contradictory and imprecise.


Obsolescence.  Something which may potentionally kill the deal if the underwriter is following company 'guidelines' versus common sense.

Purpose of the Appraisal - To make a living in the appraisal business.

Subject.  'Please, don't let it be that house.'

 

Underwriter - 'Yes, Master'
 

Useful life.  The time between an appraiser obtaining a license and becoming experienced.

 

USPAP.    Understanding Silly Property Appraisal Principles.   

 

Walk-through.  The least time consuming part of the appraisal process.