Appraisal Jargon
Every profession has it's own jargon. Here's a partial list of jargon used by appraisers:
Adjustment - When comparible properties have been determined, various items will need a price adjustment, including, location, square footage, bedrooms, etc. This is where the professional expertise of an appraiser is most valuable.
Chattel - Personal property that is on the property but doesn't affect the appraisal.
Comparable or "comp” - Properties similar to the subject property, nearby, which have sold recently, used as a basis to determine the fair market value of the subject property. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for comparable selection.
Drive-by - An appraisal that is not done with a "walk-thru", and is determined by examining the property from outside the premises, determining that the property is there, and noting any defects that are apparent from the outside only. Fannie Mae's form for this type of appraisal is its 2055, so you may hear a drive-by referred to as a "2055."
Fair market value - What a willing seller would pay a willing buyer in an arm's-length transaction.
GLA .- "Gross Living Area," the total of all above ground level floor space, including stairways and closet space. GLA is often determined using exterior wall measurements.
Latent defects - A defect on the property that is not readily apparent but which impact the fair market value.
MLS - A Multiple Listing Service is a proprietary listing of all properties on the market in a given area and their listing prices, as well as a record of all recent closed sales and their sales prices. Created by and used primary by real estate agents, many appraisers pay for access to these databases to aid in comparable selection and adjustment research.
Obsolescence - Functional obsolescence is the presence or absence of a feature which renders the property undesirable. Obsolescence can also occur because the surrounding area changes, making a feature of the property less desirable.
Subject - Short for the property being appraised -- the "subject property."
Useful life - The time during which a property can provide benefits to its owner.
URAR - Short for Uniform Residential Appraisal Report, Fannie Mae form 1004, it is the form most lenders require if they need a full appraisal (that is, with walk-through inspection).
USPAP - Short for Uniform Standards of Professional Appraisal Practice, USPAP promotes standards and professionalism in appraisal practice, and is often enacted into law in a state. It is promulgated by the Appraisal Foundation, a non-governmental entity chartered by Congress to, among other things, maintain appraisal standards.
Walk-through - An inspection that includes a visit to the entire interior of the house used in estimating value.