Appraisal & Valuation Drive-By Appraisal An exterior-only appraisal, used for some refinances and home equity loans.
Appraisal & Valuation Economic Obsolescence A decline in value caused by external factors like neighborhood decline or zoning changes.
Appraisal & Valuation Effective Age An appraiser’s estimate of a property’s age based on its condition, not actual years.
Appraisal & Valuation Effective Date of Value The date the appraised value reflects, not necessarily the inspection date.
Appraisal & Valuation Functional Obsolescence A decline in value due to outdated features or poor design relative to current preferences.
Appraisal & Valuation GRM Gross Rent Multiplier — sale price divided by gross annual rent, a quick valuation tool.
Appraisal & Valuation Highest and Best Use The legally permissible, financially feasible use that produces the greatest value.
Appraisal & Valuation Income Approach A valuation method using a property’s income stream and an appropriate cap rate.
Appraisal & Valuation Listing-to-Sale Ratio Sale price divided by list price — a measure of negotiation room in a market.
Appraisal & Valuation Paired Sales Analysis Comparing two similar sales to isolate the value of a single feature.
Appraisal & Valuation Reconciliation The appraiser’s process of weighing multiple value indications to reach a final opinion.
