Real Estate Appraisal Glossary
Plain-language definitions of the terms that show up most in an appraisal report.
Appraisal
An independent, professionally supported opinion of a property's value, developed under USPAP.
As-Is Value
The estimated value of a property in its current condition, without any repairs or improvements.
As-Repaired Value
The estimated value of a property assuming specified repairs or improvements have been completed.
Comparable Sales (“Comps”)
Recently sold properties similar to the subject property, used to support an opinion of value under the sales comparison approach.
Cost Approach
A valuation method estimating what it would cost to replace the improvements on a property, less depreciation, plus land value.
Date-of-Death Valuation
An appraisal establishing a property's value as of a specific past date, typically used for estate and probate purposes.
Fair Market Value
The most probable price a property would bring in a competitive, open market, with a willing buyer and seller and no undue pressure.
Income Approach
A valuation method used primarily for income-producing properties, based on the income a property is expected to generate.
Opinion of Value
The appraiser's professional conclusion about what a property is worth, supported by data and analysis.
PMI (Private Mortgage Insurance)
Insurance required by many lenders when a buyer's down payment is below a certain threshold; an appraisal can support a request to remove it once sufficient equity is established.
Retroactive Appraisal
An appraisal establishing value as of a date in the past rather than the current date, common in divorce and estate matters.
Sales Comparison Approach
The most commonly used valuation method, comparing a subject property to recently sold, similar properties nearby.
USPAP
The Uniform Standards of Professional Appraisal Practice; the quality-control standards licensed appraisers are required to follow.