Philadelphia Real Estate
Home Appraisals
Buyer’s Guide
Seller’s Guide
From Fishtown flips to Main Line estates, navigating a home appraisal is easier when you know the language your appraiser is speaking.
By HM Hoffman & Co. Appraisers | Philadelphia, PA | 8 min read
Whether you’re selling a rowhome in South Philly, refinancing a colonial in Chestnut Hill, or buying your first condo in Northern Liberties, at some point you’ll sit across a table — or on a Zoom call — with a real estate appraiser. And they may say things like “the GLA on this URAR reflects external obsolescence.”
Don’t panic. Every profession has its shorthand — what res ipsa loquitur is to a Philadelphia courtroom lawyer, appraisal jargon is to us. This guide translates the most common terms so you can follow along, ask smarter questions, and feel confident in the process from start to finish.
Why this matters in the Philadelphia market
Philadelphia’s neighborhoods vary dramatically in character, price, and housing stock — from century-old twin homes in the Northeast to new construction in Point Breeze to historic rowhouses in Queen Village. Understanding how appraisers analyze and compare these properties helps you understand your home’s value with confidence.
The key terms, plain and simple
Adjustment
When an appraiser finds comparable properties, they rarely match the subject home perfectly. An adjustment is the dollar figure added or subtracted to account for differences — square footage, number of bathrooms, a finished basement, a garage. In a market like the Main Line or Rittenhouse Square, where lot size and finished amenities vary widely even on the same block, adjustments are where the appraiser’s professional judgment matters most.
Chattel
Personal property sitting on or in the home that doesn’t count toward value — think furniture, portable appliances, or a detached storage shed that’s not built in. The appraisal measures the real estate, not the stuff inside it.
Comparable (or “comp”)
Nearby properties similar to your home that have sold recently. Comps are the backbone of the appraisal. In dense Philadelphia neighborhoods — think Passyunk Square or West Philadelphia near Penn — finding truly comparable sales can be straightforward. In more eclectic areas like Germantown or Kensington, where housing types are mixed, selecting the right comps is an art. USPAP (see below) sets clear professional standards for how comps are chosen.
Drive-by (or “2055”)
A limited appraisal where the appraiser reviews comparable sales and confirms the property exists from the outside — no interior inspection. Fannie Mae’s form for this is the 2055, so you may hear the terms used interchangeably. Common for refinances in stable markets or low-risk transactions.
Fair market value
The appraiser’s formal opinion of what a willing buyer would pay a willing seller — with no pressure, no family discount, no deadline. This arm’s-length transaction standard is the foundation of every appraisal report. In a hot Philadelphia market, where bidding wars are common in neighborhoods like Brewerytown or Bella Vista, the appraised fair market value may sometimes come in below the contract price — which is important information for both buyer and lender.
GLA — Gross Living Area
The total above-grade finished floor space, measured from exterior walls. Above grade means at or above ground level — a finished basement in a Roxborough split-level typically does not count toward GLA, even if it’s beautifully done. GLA directly influences value comparisons between properties, so knowing your home’s correct GLA matters.
Latent defects
Hidden problems not visible during a normal inspection — foundation cracks behind drywall, buried oil tanks (a real concern in older Philadelphia suburbs and inner-ring communities), or termite damage inside the walls. If they affect value, the appraiser must account for them. This is distinct from what a home inspector does, but the two often work hand in hand.
MLS — Multiple Listing Service
A proprietary database of properties for sale and recently sold, used primarily by real estate agents. Appraisers often pay for MLS access to research comparable sales and market trends. In the Philadelphia metro area, Bright MLS is the dominant regional service — covering the city, the collar counties, and much of South Jersey.
Obsolescence
Functional obsolescence is a feature — or missing feature — that makes a property less desirable, like a single-bath home in a neighborhood where buyers now expect two. External obsolescence happens when something outside the property changes desirability — a new highway, a zoning shift, increased industrial activity nearby. In Philadelphia’s rapidly evolving neighborhoods, external obsolescence can work both ways: what once diminished a home’s value may enhance it as an area revitalizes.
Subject
Simply the property being appraised. You’ll see “the subject property” throughout any appraisal report — it just means your home.
URAR — Uniform Residential Appraisal Report
Fannie Mae’s Form 1004. If your lender requires a full appraisal with an interior walk-through, this is almost certainly the form your appraiser will submit. It covers everything: site description, improvements, comparable sales, adjustments, and the final opinion of value.
Useful life
The period during which a property can continue to provide value to its owner. Appraisers factor in remaining useful life when evaluating condition and depreciation — especially relevant for the older housing stock that characterizes much of Philadelphia and its inner suburbs.
USPAP — Uniform Standards of Professional Appraisal Practice
The national standards governing appraisal ethics and methodology, set by the Appraisal Foundation — a Congress-chartered organization. In Pennsylvania, USPAP compliance is required by state law. When you hire a certified appraiser in Philadelphia, these are the professional rules they operate under.
Walk-through
A full interior inspection — the appraiser visits each room, notes condition, measures rooms, photographs the property, and documents features that affect value. This is the standard for a URAR (Form 1004) appraisal. If your appraiser completed a walk-through, you received the most thorough type of residential appraisal.
A note on Philadelphia-area appraisals
Greater Philadelphia is one of the most diverse real estate markets in the Mid-Atlantic — from century-old rowhomes in the urban core to sprawling estates on the Main Line to new townhome developments in Bucks and Montgomery counties. A skilled appraiser doesn’t just run numbers; they understand the micro-market dynamics of each neighborhood and know how to find comps that actually reflect what buyers are paying today.
Questions about your appraisal? We’re local.
HM Hoffman & Co. provides professional real estate appraisals throughout the Philadelphia metro area — including the city, the Main Line, Delaware County, Montgomery County, and Bucks County. We speak plain English, and we’re happy to walk you through any part of your report.