The Appraisal Foundation – The Appraisal Foundation is a Congressionally authorized non-profit organization established in 1987. The Appraisal Foundation is dedicated to the advancement of the appraisal profession. The Foundation accomplishes its mission through the work of its three independent boards: the Appraisal Practices Board (APB), the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB).
Appraisal Management Company – Appraisal Management Companies have contracts with companies (such as lenders) that require appraisal services. Appraisal Management Companies act as agents to hire the appraiser and provide other valuation services
Appraisal Practices Board (APB) – The APB is charged with the responsibility of identifying and issuing opinions on recognized valuation methods and techniques, which may apply to all disciplines within the appraisal profession. Compliance with guidance issued by the APB is voluntary.
Appraisal Review – The act or process of developing and communicating an opinion about the quality of another appraiser’s work.
Appraisal Standards Board (ASB) – The ASB sets forth the rules for ethics and competency in developing an appraisal and reporting its results within the Uniform Standards of Professional Appraisal Practice (USPAP).
Appraiser Qualifications Board (AQB) – The AQB establishes the minimum qualification criteria for state licensing, certification and re-certification of real property appraisers.
Comparable – A shortened term for similar property sales, used for comparison in the valuation process; also called “comps.”
Cost Approach – A set of procedures through which a value is derived for a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure. This estimate includes deducting depreciation from the total cost, and adding the estimated land value.
Credible appraisal – A credible appraisal is one that is worthy of belief. A credible appraisal provides support, by relevant evidence and logic, for the opinion of value. Income Approach – A set of procedures through which an appraiser derives a value for an income-producing property by converting its anticipated cash flows into property value.
Licensed and Certified Appraisers – Appraisers are licensed and certified by the state appraiser regulatory agencies, after meeting minimum education, experience and examination requirements. All states must adhere to, at a minimum, the criteria established by the Appraiser Qualifications Board of The Appraisal Foundation.
Multiple Listing Service – Typically the Multiple Listing Service is operated by the local/regional REALTORS® Associations and contains property listings, sales and expired listings. Most Licensed and Certified Appraisers have access to this information.
Public record data – Public record data include local, state and federal records and documents concerning the subject property and comparables. For most residential properties, public records are maintained by the county or local municipality and include the registry of deeds, tax assessment information, and plat and survey records. Other records may include soil surveys, topography maps, zoning maps, etc.
Sales Comparison Approach – A set of procedures in which a value is derived by comparing the property being appraised to similar properties that have been sold recently, then making adjustments to the sale prices of the comparable based on their differences to the property being appraised.