An organization principally composed of professional real estate appraisers which offers designations such as MAI, SRA, and SRPA.
An appraiser is a person qualified to estimate the value of a business, real property, or personal property. The profession requires knowledge, expertise, and, often, certification.
A Certificate of Reasonable Value (CRV) is a document issued by the Veterans Administration (VA) based on an approved appraisal, which establishes a ceiling on the maximum VA mortgage loan principal.
A Certified Residential Appraiser is qualified to appraise residences and up to four units of housing under appraiser certification law. The certification requires less education, experience, and a less comprehensive exam than a Certified General Appraiser.
A Comparative Market Analysis (CMA) is an estimate of the value of real property using indicators from sales of comparable properties. It utilizes factors such as price per square foot but is not considered an official appraisal and does not adhere to professional appraisal standards.
The cost approach is a method of appraising property based on summing the reproduction cost of improvements, minus depreciation, to the market value of the site.
An assumption within an appraisal that is so essential that the value opinion would be erroneous if the assumption proved to be false.
The Gross Income Multiplier (GIM) is a metric used in real estate to evaluate the relative value of an income-generating property. It is calculated by dividing the property's sale price by its gross annual rental income.
The term 'highest and best use' in real estate appraisal refers to the financially, legally, and physically possible use that, at the time of appraisal, is most likely to produce the greatest net return to the land or buildings over a given period.
The Income Approach is a real estate appraisal method that estimates the value of a property by its anticipated future income. This approach is particularly useful for income-generating properties such as rental buildings, commercial properties, and investment properties.
In real estate appraisal, incurable depreciation occurs when the cost to correct a defect exceeds the benefit gained from the repair, making it uneconomical to spend on the repair.
A licensed appraiser is an individual who is qualified to perform appraisals of real property but generally has less experience and credentials compared to certified appraisers. Licensed appraisers meet certain state-specific requirements.
The Market Comparison Approach, also known as the Sales Comparison Approach, is a method used in real estate appraisal to determine the value of a property by comparing it to similar properties that have recently been sold in the same area.
A comprehensive set of professional standards promulgated by the Appraisal Foundation, designed for state-certified appraisers and those in certain appraisal organizations to follow in preparing appraisal reports.
