Appraiser Jargon Explained | Vinson Real Estate Services, LLC

Understanding Common Appraisal Terms

Have you ever heard an appraiser use unfamiliar terminology? Whether you're navigating a real estate transaction or reviewing an appraisal report, understanding appraiser jargon can help you make informed decisions. Just as res ipsa loquitur is to lawyers and triple witching is to day traders, terms like external obsolescence are essential in the appraisal industry.

Below, we break down common appraisal terms and their meanings.

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Key Appraisal Terms & Definitions

  • Adjustment – Modifications made to comparable property sales prices to align with the subject property, considering factors like location, construction quality, and amenities.

  • Chattel – Personal property that exists on the subject property but is not included in the appraisal valuation.

  • Comparable ("Comp") – Recently sold properties similar to the subject property, used to determine fair market value.

  • Drive-by Appraisal – An exterior-only appraisal to confirm the property's existence and assess visible defects. Often referred to as a "2055" appraisal (Fannie Mae Form 2055).

  • Fair Market Value – The price a willing buyer would pay a willing seller in an arm’s-length transaction, as determined by the appraiser.

  • GLA (Gross Living Area) – The total above-grade floor space, including stairways and closets, measured using exterior wall dimensions.

  • Latent Defects – Hidden property defects that impact value, such as structural damage or termite infestations.

  • MLS (Multiple Listing Service) – A database of listed properties and recent sales, primarily used by real estate agents and appraisers for market research.

  • Obsolescence – The decline in property value due to outdated features (functional obsolescence) or changes in the surrounding area (external obsolescence).

  • Subject Property – The property being appraised.

  • Useful Life – The estimated period during which a property provides benefits to its owner.

  • URAR (Uniform Residential Appraisal Report) – Fannie Mae Form 1004, commonly required for full appraisals with interior inspections.

  • USPAP (Uniform Standards of Professional Appraisal Practice) – Industry standards for ethical and professional appraisal practices, established by the Appraisal Foundation.

  • Walk-through Inspection – A full interior inspection of a property used in the appraisal process

Need Help Understanding Your Appraisal? Contact Us!

If you have questions about appraisal terminology or need clarification on an appraisal report, Vinson Real Estate Services, LLC is here to help. Contact us today for expert real estate appraisal services in Maryland, DC, and Virginia.