RE Chapter 8 Key Terms

Appraisal

A professional opinion of the value of a property, as of a certain date, which is supported by objective data.

The Appraisal Foundation

An organization recognized as the authority for professional appraisal standards and qualifications for appraisers.

Appraiser

A person who values property, especially an expert qualified to do so by education and experience.

Certified General Appraiser

An appraiser who may accept assignments to appraise all types of real property.

Certified Residential Appraiser

An appraiser who may appraise one- to four-unit residential properties without regard to value or complexity.

Effective Date [Appraisal]

The date for which value was established when completing an appraisal

Fee Appraiser

An independent valuation professional hired by a client to value a particular property for a fee.

Highest and Best Use

The most profitable, legally permitted, financially feasible, and physically possible use of a piece of property.

Licensed Residential Appraiser

An appraiser who may accept assignments to appraise one- to four-unit residential properties with some limitations on complexity and the transaction value.

Reconciliation

The analysis and weighting of the values arrived at from the different appraisal approaches to arrive at a final opinion of value

Site

A tract of land that has been prepared for construction, i.e., includes access, utilities, etc.

Uniform Residential Appraisal Report (URAR)

The valuation reporting document developed and approved by Fannie Mae and Freddie Mac that is most commonly used by lenders and appraisers.

Uniform Standards of Professional Appraisal Practice (USPAP)

Standards developed by the Appraisal Standards Board of The Appraisal Foundation; recognized throughout the United States as accepted standards of appraisal practice.

Appraisal Management Company (AMC)

An entity that, for compensation, acts as a third-party intermediary by contracting with independent real estate appraisers to perform appraisals for lenders.

Federally Related Transaction

A transaction in which a federal financial institutions regulatory agency has jurisdiction and the services of an appraiser are required; includes most loans secured by a lien (first or subordinate position) on residential property.

Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)

An act passed in 1989 as a comprehensive savings and loan bailout and preventive measure against future S&L insolvency. This act recognizes USPAP as the industry standards for appraisals and identifies The Appraisal Foundation as the authority for professional appraisal standards.

Uniform Residential Appraisal Report (URAR)

The valuation reporting document developed and approved by Fannie Mae and Freddie Mac that is most commonly used by lenders and appraisers.

Uniform Standards of Professional Appraisal Practice (USPAP)

Professional appraisal standards developed by The Appraisal Foundation and now recognized throughout the United States as accepted standards of appraisal practice.