Appraiser jargon

Here are some examples of common appraiser jargon and their meanings:

Adjustment.  When comparable properties have been identified, the appraiser makes the appropriate adjustments to reflect the differences in the specific feature or other difference such as living area, acreage, amenities and the like.  This is where years of experience is most valuable.

Comparable or "comp”. Properties which have sold that have a reasonable level of similarities are used as a basis to determine the value of the subject property.  The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for comparable selection.

 
Fair market value.  The appraiser's opinion of value as written in his or her appraisal report should reflect the fair market value of the property -- what a willing buyer would pay a willing seller in an arm's-length transaction.

Square feet or living area.  "Gross Living Area," the sum of all above grade floor space.
Below grade area. The sum of any area below the grade of the site. 

Latent defects.  A defect that is not obvious or readily apparent but which may impact the fair market value.  Structural damage or termite infestation might be examples.

MLS. A Multiple Listing Service serves as the the primary tool for most appraisers which reflects listing prices and history of a property, the record of the properties which have sold and the sale 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.  The value of assets diminishes as their capabilities degrade or more desirable alternatives are developed.  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.

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.