APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions-e.g., appraisal practice, appraisal services.
COMPLETE APPRAISAL: the act or process of developing an opinion of value or an opinion of value developed without invoking the DEPARTURE RULE.
LIMITED APPRAISAL: the act or process of developing an opinion of value or an opinion of value developed under and resulting from invoking the DEPARTURE RULE.
APPRAISAL CONSULTING: the act or process of developing an analysis, recommendation, or opinion to solve a problem, where an opinion of value is a component of the analysis leading to the assignment results.
APPRAISAL PRACTICE: valuation services including, but not limited to, appraisal, appraisal review, or appraisal consulting, performed by an individual as an appraiser.
APPRAISAL REVIEW: the act or process of developing and communicating an opinion about the quality of another appraiser’s work.
APPRAISER: one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.
APPRAISER’S PEERS: other appraisers who have expertise and competency in the same or a similar type of assignment.
ASSIGNMENT: a valuation service provided as a consequence of an agreement between an appraiser and a client.
ASSIGNMENT RESULTS: an appraiser’s opinions and conclusions developed specific to an assignment.
ASSUMPTION: that which is taken to be true.
BINDING REQUIREMENT: all or part of a Standards Rule of USPAP from which departure is not permitted. (See DEPARTURE RULE.)
BUSINESS ENTERPRISE: an entity pursuing an economic activity.
BUSINESS EQUITY: the interests, benefits, and rights inherent in the ownership of a business enterprise or a part thereof in any form (including, but not necessarily limited to, capital stock, partnership interests, cooperatives, sole proprietorships, options, and warrants).
CASH FLOW ANALYSIS: a study of the anticipated movement of cash into or out of an investment.
CLIENT: the party or parties who engage an appraiser (by employment or contract) in a specific assignment.
CONFIDENTIAL INFORMATION: information received from a client, not available from any other source, which the client identifies as confidential when providing it to an appraiser.
COST: the amount required to create, produce, or obtain a property.
EXTRAORDINARY ASSUMPTION: an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions.
FEASIBILITY ANALYSIS: a study of the cost-benefit relationship of an economic endeavor.
HYPOTHETICAL CONDITION: that which is contrary to what exists but is supposed for the purpose of analysis.
INTANGIBLE PROPERTY (INTANGIBLE ASSETS): nonphysical assets, including but not limited to franchises, trademarks, patents, copyrights, goodwill, equities, mineral rights, securities, and contracts, as distinguished from physical assets such as facilities and equipment.
INTENDED USE: the use or uses of an appraiser’s reported appraisal, appraisal review, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment.
INTENDED USER: the client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report, by the appraiser on the basis of communication with the client at the time of the assignment.
INVESTMENT ANALYSIS: a study that reflects the relationship between acquisition price and anticipated future benefits of a real estate investment.
MARKET ANALYSIS: a study of market conditions for a specific type of property.
MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal.
MASS APPRAISAL: the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.
MASS APPRAISAL MODEL: a mathematical expression of how supply and demand factors interact in a market.
PERSONAL PROPERTY: identifiable tangible objects that are considered by the general public as being “personal” for example, furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all tangible property that is not classified as real estate.
PRICE: the amount asked, offered, or paid for a property.
REAL ESTATE: an identified parcel or tract of land, including improvements, if any.
REPORT: any communication, written or oral, of an appraisal, appraisal review, or appraisal consulting service that is transmitted to the client upon completion of an assignment.
APPRAISAL REPORT: a written report prepared under Standards Rule 10-2(a).
SELF-CONTAINED APPRAISAL REPORT: a written report prepared under Standards Rule 2-2(a) or 8-2(a).
SUMMARY APPRAISAL REPORT: a written report prepared under Standards Rule 2-2(b) or 8-2(b).
RESTRICTED USE APPRAISAL REPORT: a written report prepared under Standards Rule 2-2(c), 8-2(c), or 10-2(b).
SCOPE OF WORK: the amount and type of information researched and the analysis applied in an assignment. Scope of work includes, but is not limited to, the following:
- the degree to which the property is inspected or identified;
- the extent of research into physical or economic factors that could affect the property;
- the extent of data research; and the type and extent of analysis applied to arrive at opinions or conclusions.
SIGNATURE: personalized evidence indicating authentication of the work performed by the appraiser and the acceptance of the responsibility for content, analyses, and the conclusions in the report.
SPECIFIC REQUIREMENT: all or part of a Standards Rule of USPAP from which departure is permitted under certain limited conditions. (See DEPARTURE RULE.)
SUPPLEMENTAL STANDARD: an assignment performance requirement that adds to the requirements in USPAP.
VALUE: the monetary relationship between properties and those who buy, sell, or use those properties.
VALUATION SERVICES: services pertaining to aspects of property value.