A senior professional designation offered by the American Society of Appraisers. The ASA designation is awarded upon meeting rigorous requirements that include extensive experience, education, and approved appraisal reports.
Dollar value or percentage amounts that, when added to or subtracted from the sales price of a comparable property, provide an indication of the value of a subject property. Adjustments are necessary to compensate for variation in the features of the comparable relative to the subject.
In the field of real estate appraisal, amenities refer to the nonmonetary benefits that a property offers to its owner. These benefits can enhance the property's appeal and value without having a direct financial impact. Examples include pride in home ownership, scenic views, and accessibility to cultural or recreational activities.
Appraisal is a method of depreciation that values an asset at the beginning of an accounting period and again at the end. Any diminution in value is charged as an expense to the profit and loss account.
An appraisal is the assessment of alternative courses of action with a view to establishing which action should be taken. Appraisals may be financial, economic, or technical in emphasis.
A commentary by one appraiser on the appraisal report prepared by another appraiser, often completed to ensure accuracy and compliance with relevant standards.
To evaluate or appraise the value of an asset or property for various purposes, such as taxation, sale, or insurance.
A computerized method for estimating the value of a property. Often used for mass appraisal purposes, such as the reassessment of a city's property tax base.
A Certified General Appraiser is a professional authorized to appraise any type of property under the appraiser certification laws adopted by most states in the early 1990s.
Comparables, often abbreviated as COMPS, are an essential element in real estate appraisal and valuation processes. They refer to the comparability of properties with similar characteristics, used primarily to determine the market value of a subject property.
Curable Depreciation in appraisal refers to deterioration or depreciation that can be corrected at a cost less than the value that will be added.
Deferred maintenance in appraisal refers to the postponement of important repairs or upkeep measures which results in physical depreciation. Common examples include broken window glass, missing roof shingles, peeling paint, and broken gutters.
Depreciable Life refers to the period over which the cost of an asset is spread for tax purposes, or the estimated useful life of an asset for appraisal purposes.
Economic obsolescence in real estate refers to the loss of property value due to external factors outside the property itself. For instance, an expensive private home may lose value if an industrial plant is built nearby. This factor must be considered during the property's appraisal.
An assumption within an appraisal that is so essential that the value opinion would be erroneous if the assumption proved to be false.
A Hypothetical Condition is a situation assumed to be true for the purposes of analysis or appraisal, even though it is contrary to known facts.
Multiple solution rates refer to various rates of return that can be computed in certain appraisal scenarios using the Internal Rate of Return (IRR) method, particularly when cash flows vary between positive and negative values.
An origination fee is a charge imposed by lenders on borrowers, particularly for mortgage loans, to cover the costs associated with issuing the loan. It can encompass a variety of expenses such as the salesman's commission, credit check, appraisal, and title expenses.
In appraisal terminology, the recapture rate is the rate of recovery of an investment in a wasting asset. This rate is added to the discount rate to derive a capitalization rate.
Valuation is the process of determining the current worth or price of an asset or a company. This act is pivotal in finance and investing, influencing decisions ranging from purchasing securities to compliance with regulations.
