Real Estate Appraisal - Chapter 1 Vocabulary

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Real Estate Appraisal - Chapter 1 Vocabulary
2012-12-26 18:56:32

Real Estate Appraisal - Chapter 1 Vocabulary
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  1. Appraiser: A person who is expected to value property in a competent, objective, and impartial manner.
  2. Appraisal Report: The written statement where an appraiser gives his or her opinion of value.
    Notes: Appraisals are usually required whenever property is bought, sold, refinanced, assessed, taxed, condemned, insured, or mortgaged.They may be required for divorce settlements, when business partnerships are dissolved, or when property is listed as a business asset.
  3. Collateral: Property pledged to secure a loan
  4. Retrospective Appraisal: An appraisal that looks at the value of a property at a point of time in the past.
  5. Value: The present worth of rights to future benefits that come from property ownership.
  6. Market Value: The most probable price a property would bring in normal market conditions.
  7. Price: The amount of money paid for a property.
  8. Cost: Amount of money it takes to build a structure.
  9. Uniform Standards of Professional Appraisal Practice (USPAP): A set of written standards defining ethical and competent behavior on the part of appraisers.
  10. Appraisal Standards Board (ASB): The board that develops, publishes, interprets, and amends the Uniform Standards of Professional Appraisal Practice.
  11. Savings and Loans Crisis (S&L Crisis): A wave of savings and loan failures in the 1980s caused by mismanagement, failed speculation, and, in some cases, fraud.
  12. Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA): Adopted USPAP as the generally recognized standards of practice in the appraisal profession and gave USPAP “teeth.”
  13. Federal Related Transactions: Any real estate-related financial transaction which a federal financial institutions regulatory agency engages in, contracts for, or regulates and which requires the services of an appraiser.
  14. Transaction Value: Either the loan amount or the market value of the property involved.
  15. Appraisal Subcommittee (ASC): An agency created by FIRREA which maintains the official registry of appraisers and oversees the state agencies and The Appraisal Foundation.
  16. Appraiser Qualifications Board (AQB): The board that establishes the minimum education, experience, and examination requirements an individual must meet in order to be a licensed or certified appraiser.
  17. Tax Reform Act of 1986: Changed the tax implications associated with many investment properties.
  18. Complex 1-4 unit residential property: Means that the property being appraised, the form or ownership, or the market conditions are atypical (unusual).