Arizona Home and Commercial Appraisals
Jargon about Appraisers and Appraisals:
Have
you heard an appraiser use any of these terms?
Were
you clueless about the meanings?
Did
you just hear one of our appraisers use it and you came here to
figure out what it meant?
We
don't mean to speak a foreign language, but all professions have
jargon. What res ipsa loquitur is to a lawyer and triple
witching is to day traders, external obsolescence is to
appraisers. Here are some examples of common appraiser jargon
and their meanings:
Adjustment: When comparable properties have been identified, the
appraiser adjusts the price of each property according to
differences in living area (square footage), acreage, frontage,
amenities and the like. The goal is to hypothetically make each
comparable "equal" to the subject property. This is
where the professional expertise of an appraiser comes in most
handy.
Chattel: Personal property that may be on the subject property
but which does not figure into the opinion of value in the
appraisal report. Because personal property is not a permanent
part of the real estate, it typically receives no consideration.
Drive-by: An appraisal that is limited to the exterior
inspection of comparable sales and a confirmation that the
property is actually there and has no obvious defects or damage
visible from the exterior. Fannie Mae's form for this type
of appraisal is its 2055, so you may hear a drive-by referred to
as a "2055."
Fair market value: The appraiser's opinion of value as written
in his or her appraisal report should reflect the fair market
value of the property -- what a willing seller would pay a
willing buyer in an arm's-length transaction.
GLA: "Gross Living Area," the sum of all above grade
floor space, including stairways and closet space. GLA is
often determined using exterior wall measurements.
Latent defects: A defect on the property that is not readily
apparent but which impact the fair market value.
Structural damage or termite infestation might be examples.
MLS: A Multiple Listing Service is a proprietary listing of all
properties on the market in a given area and their listing
prices, as well as a record of all recent closed sales and their
sales prices. Created by and used primary by real estate agents,
many appraisers pay for access to these databases to aid in
comparable selection and adjustment research.
Obsolescence: The value of assets diminishes as their
capabilities degrade or more desirable alternatives are
developed. Functional obsolescence is the presence or
absence of a feature which renders the property undesirable.
Obsolescence can also occur because the surrounding area
changes, making a feature of the property less desirable.
Subject: Short for the property being appraised -- the
"subject property."
Useful life: The time during which a property can provide
benefits to its owner.
URAR: Short for Uniform Residential Appraisal Report, Fannie Mae
form 1004, it is the form most lenders require if they need a
full appraisal (that is, with walk-through inspection).
USPAP: Short for Uniform Standards of Professional Appraisal
Practice, USPAP promotes standards and professionalism in
appraisal practice, and is often enacted into law in a state. It
is promulgated by the Appraisal Foundation, a non-governmental
entity chartered by Congress to, among other things, maintain
appraisal standards.
Walk-through: An inspection that includes a visit to each part
of the interior of the house used in estimating value.
TERMINOLOGY
Terminology:
FHLMC: “Freddie Mac”-Federal Home Loan Mortgage Corporation
FNMA: “Federal National Mortgage Association. A
congressionally chartered corporation which buys mortgages on
the secondary market.
442 Form: Certificate of Completion: Request this form after
house is finished. Use new order form and order number. Fee is
$75.00 plus fee trip of $75.00. (Example: Overton, NV)
APN: Assessor’s Parcel Number:
EDI: Electronic Delivery – Process in which the appraiser
sends an appraisal report in a format (i.e. lighthouse, MCI.)
and the client has the software to open and read that file.
PDF: Portable Document Format: By Acrobat Adobe Writer:
Appraisal converted to this format can be sent as attachments to
e-mails for that clients can open and print an appraisal report
which takes the place of hard copy.
Order: Order form sent by the client requesting an appraisal
report
Client: Client for the appraisal. We have a client /appraiser
confidentiality requirement to only answer to this client.
Neither the appraisal nor any result whatsoever is to be
released to any other party without written permission from the
client. Owners may give verbal permission to release appraisal
to their lender.
Lender: Lender is often confused with client. But, the lender is
typically the financial institution funding the loan (i.e.,
bank). Often, our client is also a lender, (i.e. a bank.)
Appraiser Statement: The statement of account sent to us by the
appraiser.
Client Statement: The statement we send to the client about
their account.
Monthly Log: All orders are logged in by number, appraiser,
address, client, borrower, fee, payment method, etc.
Comp: Comparable sale: The sale of a property which is similar
to the subject property.
“Can you pull comps?”: This means that the client wants an
appraiser to research the comparables sales that will be used in
the appraisal and to report what these sale prices are.”
(Clients would actually like us to give them an appraised value
over the phone, but we will not, cannot and shall not do that.)
Our response: We always pull comps before we look at the
property. That is our policy. We will contact you if the sale
prices of similar properties are lower than the owner’s
estimate value. So, send us an order. If the owner’s estimate
is within the range or lower than the comps, we will go out and
do the appraisal. If the comps are lower than the estimate, we
will call you and tell you what the sale prices of the
comparable prices are. When you send an order, we will not go
out and if the owner’s estimate is above the sale prices of
the comparables.
Rack: Order logs ordered by Alpha characters.
Alpha files – Filing system Owner
Borrower
Buyer
Purchaser
Seller
Assigning Orders:
Assign an appraisal
Full Appraisal:
COD: Cash on Delivery. Payment is typically due at the time of
the inspection. Occasionally, we will accept payment upon
delivery of the report to a lender (i.e. a bank, not a mortgage
broker). Private parties are never billed.
Appraisal Inspection: Inspection of subject property by the
appraiser. A “home inspection” is done typically by a home
inspector to look for material defects and major structural
problems. An appraiser is not a home inspector and for that
reason, is not liable for problems that are not evident.
Faxing appraisal orders to appraiser: After faxing order, turn
form over and stamp with fax stamp, and put appraiser’s
initials. Write date of fax and the property address. Highlight
address on front of form.
PDF- Portable Document Format generated by Adobe Acrobat Writer.
Appraisers convert appraisal files to PDF format, then send them
by e-mail to the customers as an attachment to e-mail.
REO: Real Estate Owned
We now have
over 40 state licensed and certified appraisers
with over 400 years combined experience
providing valuation services for every type of
property from "Houses to High-rises".
We cover most
Arizona
counties
and Nevada
and
California
. No job is too big or too
small.
Our
6-person office staff is solely dedicated to providing
you with the best experience possible. Our
office staff will give you the fastest, highest quality
valuation service in the entire state of Arizona.
To order YOUR
appraisal, click on "order an appraisal" to the left,
or contact us:
| By Phone: |
(702) 25-EXTRA (Office) |
|
(877) 24-EXTRA (Toll Free) |
| |
(702) 257-2410 (Mobile) |
| By Fax: |
(702) 257-0111 (Fax) |
| By
e-mail: |
info@AppraisersofArizona.com |
Call us Toll Free @ (877) 24-EXTRA or
FAX US @ (702) 257-0111
Email: Info@AppraisersofArizona.com
APPRAISERS OF ARIZONA.COM: We are Faster!
|
