Appraisal and the comparison approach – key terms Flashcards
An entity that, for compensation, access a third-party intermediary by contracting with independent real estate appraisers to perform appraisals for lenders
Appraisal management company (AMC)
A service that uses mathematical modeling combined with databases of existing properties and transactions to calculate real estate values
Automated valuation model (AVM)
And evaluation prepared by broker or sales person for a lender who is considering a short sale, foreclosure, or home equity line of credit
Broker price opinion (BPO)
Someone who is qualified to appraise all types of real property
Certified general appraiser
Someone who is qualified to appraise 1 to 4 units of single-family residential real estate without regard to transaction value or complexity
Certified residential appraiser
A property that is similar to the subject property in the appraisal process
Comparable – also called a comp
An appraisal approach that estimate the value of real property by performing a market analysis of the comparable properties in the area where the subject property is located. Data are collected and adjustments made for differences.
Comparison approach - also called
sales comparison approach
direct sales comparison approach, or market data approach
A method of determining the approximate market value of a subject property by comparing it to other similar properties in a given area that have sold, are presently for sale, or did not sell.
Competitive market analysis (CMA)
A valuation performed without a physical inspection of the property, generally made based on tax records in the multiple listing service (MLS)
Desktop appraisal
Exterior inspection of homes by licensed real estate appraisers typically used for documenting comparable listings or sales used when appraising for a lender
Drive-by appraisal
Someone who is license to appraise less valuable and less complex properties
Licensed appraiser
A written type of appraisal report that allows the appraiser to comment fully on the opinions and conclusions of the appraisal
Narrative appraisal report
The final step in the appraisal process that involves analyzing the values derived from the different appraisal approach is to arrive at a final opinion of value
Reconciliation – also called correlation
The form used in residential appraisal is that allows for standard reporting an analysis of single-family dwellings
Uniform residential appraisal report (URAR)
