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Common Real Estate Appraisal Terms

Appraisal

The determination of property value based on recent sales information of similar properties.

Appraiser

A licensed professional who determines the value of property.

Assesment

Determining a property's value for the purpose of taxation.

Appreciation

The increase in property value due to market trends.

Asset

Valuable items owned by a person, corporation or entity.

Broker

An individual who assists in the funding or negotiating of contracts for a client.

Certificate of Reasonable Value (CRV)

An appraisal that has been performed on a property that is being paid for with a VA loan. After the property is appraised, the Veterans Administration issues a CRV.

Deed

A legal document which affects the transfer of ownership of real estate from the seller to the buyer.

Depreciation

The decline of property value.

Equity

The difference between current market valu and the principal balance.

Loan to Value Ratio

The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.

Mortgagee

The lender in a mortgage agreement.

Mortgage Insurance

Insurance that covers the lender against losses incurred as a result of a default on a home loan.

Private Mortgage Insurance (PMI)

Paid by a borrower to protect the lender in case of default. PMI is typically charged to the borrower when the Loan-to-Value Ratio is greater than 80%.

Refinancing

The process of paying off one loan with the proceeds from a new loan, using the same property as security.

Second Mortgage

A mortgage that has a lien position under the first mortgage.

Survey

A map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.