Dictionary

absorption rate: Calculation of the price of real estate in a given area based on the price of those that have already been sold against those still available.

abstraction method: Property estimating method in which similar market properties are evaluated to determine the value for a particular property. This method is also based on a prediction of supply and demand.

affirmation: A real estate term in which an individual states truth as a declaration under penalty of perjury.

American Society of Appraisers (ASA): An umbrella organization with localized chapters for professionals in the appraisal industry. Potential members must seek accreditation and are subject to strict evaluation before gaining membership.

appraisal: Also called "valuation," the actual value of any product as perceived by an opinion, a comparison to other like products, and relational calculations based on specific benchmarks.

appraisal approach: A specific method used to determine a value. Different types of appraisal approach include cost approach, income approach and sales comparison approach.

appraisal consulting: An approach to reaching a value through analytic methods resulting in a recommendation based on opinion.

appraisal report: The final written document stating the appraiser's opinion on the value of a piece of property with corresponding materials to back up that claim. In real estate this is the URAR/1004.

appraiser: A trained professional who has knowledge of specific appraisal practices with regard to various markets (including real estate, antiques, art and vehicles), but holds no vested interest in the value nor in any resulting transaction.

appropriate market level: A method for calculating value on any product based on its condition and demand and, in some cases, quantities in current existence.

authentication: A verification process used by experts to determine a product's originality.

Computer-Assisted Mass Appraisal (CAMA): A bundled software program that can make a determination of value based on analysis and existing computer generated models.

Certificate of Reasonable Value (CRV): The final appraisal form provided by the Veterans Administration.

certified general appraiser: An accredited professional who can provide appraisals on any property and has passed specific exams and met requirements on local and state levels.

certified residential appraiser: An accredited professional who meets all certification standards with regard to residential properties only.

comparables: Also known as "comparable sale" or "comps," a process for appraisal based on comparison of other like properties that have sold within a specified time period.

condition: The state of a piece of property with regard to physical properties usually related to damage or age. In the fields of antiques and collectibles, this is based on a number of parameters that contribute to its value.

contingent appraisal: A valuation based on analysis of information gained from other sources, including appraisal professionals, experts in specific fields and testing services.

cost approach: A method of evaluating property based on the value of the land, plus the replacement cost, minus depreciation.

cost to cure: In real estate, this type of appraisal estimate is used on property that requires certain repairs to sell, or is in the middle of said repairs or renovations. The value is judged on completion.

depreciation: The decrease in value based on certain parameters such as replacement cost, level of deterioration length of use and market value.

equalization: The process of providing equitable appraisals and assessments within a specific region and according to governmental regulations.