Professional Appraiser Terminology Flashcards
Replacement Cost New
The current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date.
Fair market value
An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither under compulsion to buy or sell and both having reasonable knowledge of relevant facts, as of a specific date.
Fair market value in continued use and assumed earnings
An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell and both having reasonable knowledge of relevant facts, as of a specific date and assuming that the business earnings support the value reported without verification.
Fair market value installed
An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither under compulsion to buy or sell and both having reasonable knowledge of relevant facts, considering market conditions for the asset being valued, independent of earnings generated by the business in which the property is or will be installed, as of a specific date.
Fair market value removed
An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell and both having reasonable knowledge of relevant facts, considering removal of the property to another location, as of a specific date.
Liquidation value in place
Opinion of the gross amount, expressed in terms of money that typically could be realized from a properly advertised transaction, with the seller being compelled to sell, as of a specific date, for a failed, nonoperating facility, assuming hat the entire facility is sold intact.
Orderly liquidation
Opinion of the gross amount, expressed in terms of money that typically could be realized from a liquidation sale, given a reasonable period of time to find a purchaser, with the seller being compelled to sell as is, where is basis, as of a specific date.
Forced liquidation
Opinion of the gross amount, expressed in terms of money that typically could be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as is, where is basis, as of a specific date.
Salvage value
Opinion of the amount, expressed in terms of money that may be expected for the whole property or a component of the whole property that is retired from service for possible use elsewhere, as of a specific date.
Scrap value
Opinion of an amount, expressed in terms of money that could be realized for the property if it were sold for its material content, not for productive use, as of a specific date.
Reproduction Cost New
The cost of reproducing a new replica of a property on the basis of current prices with the same or closely similar materials, as of a specific date.
American Society of Appraisers - AM designation
Qualified with 2+ years of experience
American Society of Appraisers - ASA designation
Qualified with 5+ years of experience
Appraisal Institute - MAI designation
Highest level designator qualified to advise clients in commercial, industrial, and residential real estate valuation
Appraisal Institute - SRA designation
Experienced In single family family homes, town homes, and residential income real estate valuation.
