Appraiser Technical Language

CMP Appraisals aims to provide transparent reports to our clients. Below are technical terms you will hear in reference to our appraisal process and reports.

Virginia Beach Appraiser terns scenery

Adjustment: After comparable properties have been selected, the appraiser makes adjustments to the Sales Price of each of these properties in order to equate them to the subject property. Some critical components of these adjustments can include condition, gross living area, upgrades, site area, etc. All adjustments are market-based.

Chattel: Personal property located at the subject property that does not contribute to property's worth in the valuation report.

Comparable or "comp": Properties holding a likeness to the subject property that have been sold in the area recently. These can be used as a basis to calculate the value of the subject property.

Drive-by: This is an exterior-only report on a subject property. These may be referred to as a 2055. A drive-by is mainly ordered to confirm the existence of a property and verify there are no obvious physical defects or damage to the exterior.

Fair market value:  This is the appraiser's professional opinion of a property's value as listed in the valuation report. It is essentially what an accepting buyer would be willing to pay an accepting seller.

GLA:  The sum of all above ground floor space is called a property's gross living area. This measurement is often found by using exterior wall measurements and includes all stairways and closet spaces.

Latent defects: These are property defects which may not be superficially apparent, but do affect the property's fair market value. These may include damage to the property's structure or termite infestation.

MLS:  A Multiple Listing Service is a professional listing of all properties on the market in a subject area. Details included are listing price, records of past closed sales, and the prices on which these sales closed. CMP Appraisals secures access to these databases in order to provide you with the most accurate reports including comparable selections and adjustment attribute research.

Obsolescence: Sometimes an asset's value decreases as more preferable building alternatives emerge. A functional obsolescence is a feature that is either present or absent that affects the desirability of a property. Obsolescence can also occur as a surrounding area changes with time.   

Subject: The property being appraised is often referred to as the "subject property."

Useful life: This is the span of time in which a subject property continues to bring its owner financial benefits.

URAR: Uniform Residential Appraisal Report, Fannie Mae form 1004, is the form most lenders require when ordering a full appraisal report.

USPAP: Uniform Standards of Professional Appraisal Practice, USPAP  promotes appraisal practice in relation to standards and professionalism. It is governed by the Appraisal Foundation, a non-governmental entity authorized by Congress to maintain correct appraisal standards and practices.

Walk-through: An appraiser's physical walk-through of a subject property that includes each interior part in order to estimate the property's value. 

If you have a question regarding any of these terms, it would be our pleasure to help. Contact CMP Appraisals today!