Appraisal Glossary

Appraisal

A professional, unbiased opinion of a property's value, developed by a licensed or certified appraiser following recognized standards.

Appraiser

An individual licensed or certified by the state to develop and communicate opinions of real property value.

Market Value

The most probable price a property should bring in a competitive, open market under all conditions requisite to a fair sale, with both buyer and seller acting knowledgeably and without undue pressure.

Assessed Value

The value a county Board of Tax Assessors places on a property for property tax purposes — in Georgia, generally 40% of fair market value.

Taxable Value

The assessed value minus any applicable exemptions (like homestead exemption), used to actually calculate the property tax bill.

Effective Date

The specific date to which an appraisal's value opinion applies — which can be the current date or a historical (retrospective) date.

Report Date

The date the appraisal report itself was prepared, which can differ from the effective date.

Retrospective Appraisal

An appraisal with an effective date in the past, such as a date of death for an estate, or a separation date for a divorce.

Intended Use

How the results of an appraisal are meant to be used by the client and any other intended users.

Intended User

The client and any other party the appraiser identifies, by name or type, as being authorized to rely on the appraisal report.

Scope of Work

The type and extent of research and analysis the appraiser determines is necessary to produce credible results for a specific assignment.

Comparable Sale

A recently sold property similar enough to the subject property to provide credible evidence of market value.

Adjustment

The estimated, market-supported dollar difference in value attributable to a specific difference between a comparable sale and the subject property.

Reconciliation

The process of weighing all evidence and analysis into a single, supported opinion of value — not necessarily a simple average.

Gross Living Area

The total finished, habitable, above-grade area of a home, measured using a standardized method.

Sales Comparison Approach

A method of estimating value by comparing the subject property to recent sales of similar properties and adjusting for differences.

Cost Approach

A method of estimating value based on land value plus the depreciated cost to reconstruct the improvements.

Income Approach

A method of estimating value based on the income-generating potential of a property, typically used for rental/investment properties.

Highest and Best Use

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible, and maximally productive.

Extraordinary Assumption

An assumption that, if found to be false, could alter the appraiser's opinion — must be clearly disclosed in the report.

Hypothetical Condition

A condition used in the analysis that is contrary to known fact as of the effective date — must be clearly disclosed in the report.

AVM

An Automated Valuation Model — a computer algorithm that estimates value from public data, with no property inspection and no human judgment.

CMA

A real estate agent's informal pricing opinion, typically used to set a listing price — not a standards-based appraisal.

ROV

A formal process, usually through a lender, for requesting review of a completed appraisal — used to raise factual errors or additional relevant information.

USPAP

The Uniform Standards of Professional Appraisal Practice — the generally recognized ethical and performance standards for the appraisal profession in the United States.

Board of Tax Assessors

The county office responsible for determining property values for tax purposes.

Board of Equalization

A citizen panel that hears property tax assessment appeals at the county level in Georgia.

Millage Rate

The tax rate applied to the taxable value of a property, expressed in mills (dollars per $1,000 of taxable value), to calculate the property tax bill.

Annual Notice of Assessment

The official notice a Georgia county mails to property owners each year showing the assessed value and the deadline to file an appeal.

Property Record

The county's official record of a property's characteristics (size, age, features) used in determining its assessed value.

GIS

A mapping system counties use to show parcel boundaries, zoning, and other property/location data.

Right to Receive a Copy of Your Appraisal

Under ECOA/Regulation B, if you apply for credit secured by a first lien on your home, your lender must notify you of your right to a copy of any appraisal and provide it to you promptly, generally at no charge beyond the appraisal's actual cost.