Basic Real Estate Appraisal Terminology

Table of Contents

1. Is there an abbreviation for appraisal?
2. Adjustment
3. Appraisal management company (AMC)
4. "As is"
5. "As completed" or "subject to"
6. Bracketing
7. Comparable or "comp"
8. Condition and quality ratings
9. Cost approach
10. Drive-by
11. Effective date
12. Extraordinary assumption
13. Grid
14. GBA
15. GLA
16. Highest and best use
17. Hypothetical condition
18. Income approach
19. Inspection
20. Market value
21. MLS
22. Obsolescence
23. Predominant value
24. PUD
25. Reconciliation
26. Sales comparison approach
27. Scope of work
28. SF
29. Subject
30. UAD
31. URAR
32. USPAP
33. Walk-through

Real estate appraisal terms are the words and abbreviations appraisers use in reports and conversations, from "comp" and "GLA" to "subject to" and "effective date." This glossary explains the common ones in plain English, so a homeowner, buyer or attorney can follow an appraisal report.

The definitions follow standard usage in USPAP and Fannie Mae's guidelines. The full professional reference is The Dictionary of Real Estate Appraisal, published by the Appraisal Institute.

Is there an abbreviation for appraisal?

There is no single official abbreviation for the word "appraisal." Some people write "appr." informally, but dictionaries use appr. for other words, such as apprentice and approval, so spelling it out is clearer.

Appraisal reports themselves are full of abbreviations. These are the ones homeowners ask about most:

Abbreviation	Meaning
URAR	Uniform Residential Appraisal Report
GLA	Gross living area
GBA	Gross building area
SF or sq ft	Square feet
ac	Acres (used for lot size)
UAD	Uniform Appraisal Dataset
USPAP	Uniform Standards of Professional Appraisal Practice
MLS	Multiple Listing Service
DOM	Days on market
PUD	Planned unit development
AMC	Appraisal management company
C1 to C6	Condition ratings, C1 best
Q1 to Q6	Quality of construction ratings, Q1 best
N, B, A	Neutral, beneficial, adverse (location and view)
Res	Residential (location)
BsyRd	Busy road (location)
ArmLth	Arm's length sale
s / c	Settlement (closing) date / contract date of a comparable sale

Adjustment

An adjustment is a dollar amount added to or subtracted from a comparable sale's price to account for a difference from the subject property. If a comparable has an extra bathroom, the appraiser subtracts what the market pays for that bathroom, so the comparable reflects what it would have sold for if it matched the subject.

Appraisal management company (AMC)

An AMC is a company that handles appraisal orders for lenders. It picks the appraiser, manages the order and delivers the report, which keeps the loan officer away from the appraiser.

"As is"

An "as is" value is the value of the property in its current condition on the effective date, with no repairs or improvements assumed. Most appraisals are "as is."

"As completed" or "subject to"

These values assume work that isn't done yet. "Subject to completion" values a home as if planned construction or a renovation were finished, based on the plans and specifications. "Subject to repairs" values it as if specific repairs were made.

A lender making a loan on a "subject to" appraisal usually requires the appraiser to come back and confirm the work was completed.

Bracketing

Bracketing means choosing comparables that fall on both sides of the subject for important features. If the subject has a 5,000 square foot lot, one comparable with a 6,000 square foot lot and another with a 4,000 square foot lot bracket it. Bracketing shows the value is supported from above and below.

Comparable or "comp"

Comps are the comparable properties the appraiser compares to the subject property. They are mostly recent sales of similar nearby homes, used in the sales comparison approach. Rental comparables are used in the income approach.

Condition and quality ratings

On Fannie Mae and Freddie Mac reports, appraisers rate condition from C1 (new, never lived in) to C6 (substantial damage or deferred maintenance) and construction quality from Q1 (highest) to Q6 (lowest). The ratings are standardized, so lenders read them the same way on every report.

Cost approach

The cost approach is one of the three approaches to value. The appraiser estimates the land value, adds what it would cost to build the improvements new today, and subtracts depreciation. It carries the most weight for newer homes and unusual properties with few comparable sales.

Drive-by

A drive-by is an exterior-only appraisal. The appraiser views and photographs the home from the street and relies on public records and other data for the interior and the size. Appraisals with no visit at all are desktop appraisals.

Effective date

The effective date is the date the value applies to. For a mortgage appraisal it is usually the inspection date. A retrospective appraisal has an earlier effective date, such as the date of death for an estate or trust.

Extraordinary assumption

An extraordinary assumption is something the appraiser assumes is true about uncertain facts for a specific assignment, which could change the results if it turned out to be false. An example: assuming the interior is in the same condition as the exterior when the appraiser can't go inside.

Grid

The grid is the table in the sales comparison approach that lines up the subject and the comparables side by side: location, lot size, square footage, bedrooms, bathrooms, condition and more. The adjustments are made in the grid. The guide on how to read an appraisal walks through it.

GBA

GBA stands for gross building area. It is the measure used for 2-4 unit properties on the Form 1025. Fannie Mae defines it as the total finished area based on exterior measurements, including finished above-grade and below-grade living areas and interior common areas, but not exterior common areas such as open stairways.

GLA

GLA stands for gross living area: the finished, above-grade living space of a home. Basements don't count toward GLA even when finished, and neither do garages. Both are reported on separate lines. For Fannie Mae loans, appraisers measure GLA under the ANSI Z765 standard.

Highest and best use

Highest and best use is the reasonably probable use of a property that produces the highest value. It has to be legally permissible, physically possible, financially feasible and maximally productive. For most homes, the highest and best use is the current use as a home.

Hypothetical condition

A hypothetical condition is something the appraiser knows is not true on the effective date but assumes for the analysis, such as valuing a home as if a remodel that hasn't started were finished.

Income approach

The income approach values a property by the income it produces or could produce. For 2-4 unit homes it usually uses a gross rent multiplier based on comparable rentals. It is rarely used for owner-occupied single-family homes.

Inspection

The inspection is the appraiser's visit to the property. In a full inspection, the appraiser measures the home, photographs the interior and exterior, and notes condition and features. In an exterior-only inspection, the appraiser photographs the outside and doesn't measure.

Market value

Market value is the type of value most appraisals report. The definition used on Fannie Mae forms is "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus."

MLS

The Multiple Listing Service is the database local real estate brokers use to list homes for sale. It records listings, sales, expirations and cancellations, with photos and details. It is the main source of comparable sales for most residential appraisals, though off-market sales may not appear in it.

Obsolescence

Obsolescence is a loss in value from something other than wear and tear. Along with physical deterioration, it makes up depreciation in the cost approach.

Functional obsolescence comes from the property itself, like a dated floor plan or a bedroom reached only through another bedroom. It is curable when fixing it costs no more than the value it adds, and incurable when it costs more.

External obsolescence comes from outside the property and is out of the owner's control, such as a busy road or a commercial building next door.

Predominant value

Predominant value is the most common price for one-unit homes in the subject's neighborhood. It appears in the neighborhood section of the report next to the low and high prices. It is not the average price and not the highest sale.

PUD

A planned unit development is a subdivision where each owner owns their home and lot, and a homeowners association owns and maintains common areas such as roads, pools or open space. Owners pay mandatory HOA dues. Unlike in a condominium, the owner owns the land under the home.

Reconciliation

Reconciliation is the final step, where the appraiser weighs the results of the approaches used and the strength of each comparable to reach one opinion of value.

Sales comparison approach

The sales comparison approach is the most used of the three approaches for homes. The appraiser finds recent sales of similar properties, adjusts each one for its differences from the subject, and reconciles the adjusted prices into an opinion of value.

Scope of work

Under USPAP, the scope of work is the type and extent of research and analysis in an assignment: how the property is inspected, what data is collected and which approaches are used. The appraiser sets it after identifying the client and intended users, intended use, type of value, effective date, the property's relevant characteristics and any assignment conditions.

SF

SF means square feet, also written sq ft. Appraisers use it for the size of the home and the lot. Larger lots are often shown in acres (ac).

Subject

The subject, or subject property, is the property being appraised.

UAD

UAD stands for Uniform Appraisal Dataset. It sets standard definitions, ratings and abbreviations for appraisal reports delivered to Fannie Mae and Freddie Mac, such as the C and Q ratings and the location codes in the table above. Under the older UAD it applied to the 1004, 1073, 1075 and 2055 forms. Its newest version, UAD 3.6, goes with the redesigned URAR.

URAR

URAR stands for Uniform Residential Appraisal Report, the Fannie Mae Form 1004 used for most single-family home appraisals. A redesigned URAR under UAD 3.6 became mandatory for new appraisals delivered to Fannie Mae and Freddie Mac on November 2, 2026, replacing the separate older appraisal forms with one report. Some lenders have a temporary exception to keep using the old format, according to Freddie Mac.

USPAP

The Uniform Standards of Professional Appraisal Practice are the ethical and performance standards for appraisers in the United States, published by The Appraisal Foundation. Licensed appraisers must follow them on federally related transactions, and California requires them for its licensees.

Walk-through

The walk-through is the part of the inspection where the appraiser goes room by room to sketch the layout, photograph each room and note finishes and condition.