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McKissock - General Report Writing and Case Studies Questions and Answers Graded A+
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McKissock - General Report Writing andCase Studies
Appraisal - answer"(noun) The act or process of developing an opinion of value. an
opinion of value; (adjective) of or pertaining to appraising and related functions such as
appraisal practice or appraisal services."1
Report - answer any communication, written or oral, of an appraisal or appraisal review
that is transmitted to the client or a party authorized by the client upon completion of an
assignment. 2
Client - answer “The party or parties who engage, by employment or contract, an
appraiser in a specific assignment. Comment: The client may be an individual, group, or
entity, and may engage and communicate with the appraiser directly or through an
agent."3
Date of the Report - answer The date that the appraiser completed and transmitted the
appraisal report to the client. It is usually - but not always - different from the effective
date of value stated in the appraisal report.
Effective Date - answer The date to which the value applies. It can be current,
prospective, or retrospective. The effective date of value establishes the viewpoint from
which the appraiser viewed the appraisal problem.
Intended use - answer"the use(s) of an appraiser's reported appraisal or appraisal
review assignment results, as identified by the appraiser based on communication with
the client at the time of the assignment."4
Intended User - answer"the client and any other party as identified, by name or type, as
users of the appraisal or appraisal review report by the appraiser, based on
communication with the client at the time of the assignment."5
Personal Property - answer"Identifiable tangible objects that are considered by the
general public as being 'personal' (e.g., furnishings, artwork, antiques, gems and
jewelry, collectibles, machinery and equipment; all tangible property that is not classified
as real estate."6
Real Estate - answer"An identified parcel or tract of land, including improvements, if
any."7
,Real Property - answer"The interests, benefits and rights inherent in the ownership of
real estate".8
This often is referred to as the "bundle of rights" associated with owning real estate.
These rights include: - answerThe right to sell the property;
The right to lease or rent the property;
The right to use the property;
The right to give the property away;
The right to enter or leave the property; and
The right to refuse to do anything with the property.
To determine the appropriate scope of work for the individual assignment, the appraiser
must: - answer-Rely on the information gained in the first step of the appraisal process.
Proper identification of the problem is essential.
-Ensure that he or she has the knowledge, experience, and competency to accomplish
this assignment.
-Determine the client's expectations for this type of assignment.
-Not allow the assignment conditions to limit his or her ability to arrive at a credible
opinion of value, given the intended use of the appraisal.
-Be able to support the decision for the level of work to be accomplished.
-Be prepared to defend the research and analysis he or she decided was not required
for this assignment's credible opinion of value.
Ethics Rule of USPAP - answer"An appraiser must promote and preserve the public
trust inherent in appraisal practice by observing the highest standards of professional
ethics. An appraiser must comply with USPAP when obligated by law or regulation, or
by agreement with the client or intended users. In addition to these requirements, an
individual should comply any time that individual represents that he or she is performing
the service as an appraiser."1
Among the requirements, USPAP states: - answer"In reporting the results of a real
property appraisal, an appraiser must communicate each analysis, opinion, and
conclusion in a manner that is not misleading.
Comment: STANDARD 2 addresses the content and level of information required in a
report that communicates the results of a real property appraisal.
STANDARD 2 does not dictate the form, format, or style of real property appraisal
reports. The form, format, and style of a report are functions of the needs of intended
users and appraisers. The substantive content of a report determines its compliance.
Each written or oral real property report must include: - answer-clearly and accurately
set forth the appraisal in a manner that will not be misleading;
-contain sufficient information to enable the intended users of the appraisal to
understand the report properly; and
-clearly and accurately disclose all assumptions, extraordinary assumptions,
hypothetical conditions, and limiting conditions used in the assignment."2
,Standard Rule 2-2 - answer(a) The content of an Appraisal Report must be consistent
with the intended use of the appraisal and, at a minimum:
(i) state the identity of the client, unless the client has specifically requested otherwise;
state the identity of any intended users by name or type;
(ii) state the intended use of the appraisal;
(iii) summarize information sufficient to identify the real estate involved in the appraisal,
including the physical, legal, and economic property characteristics relevant to the
assignment;
(iv) state the real property interest appraised;
(v) state the type and definition of value and cite the source of the definition;
Standard Rule 2-2 Cont: - answer(vi) state the effective date of the appraisal and the
date of the report;
(vii) summarize the scope of work used to develop the appraisal;
(viii) summarize the information analyzed, the appraisal methods and techniques
employed, and the reasoning that supports the analyses, opinions, and conclusions;
exclusion of the sales comparison approach,
(ix) state the use of the real estate existing as of the date of value and the use of the
real estate reflected in the appraisal;
(x) when an opinion of highest and best use was developed by the appraiser,
summarize the support and rationale for that opinion;
Standard Rule 2-2 Cont II: - answer(xi) clearly and conspicuously:
state all extraordinary assumptions and hypothetical conditions; and
state that their use might have affected the assignment results; and
(xii) include a signed certification in accordance with Standards Rule 2-3.1
FIRREA Market Value Definition Developed by Federal Regulatory Agencies: -
answerMarket value means 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 and knowledgeably, and assuming the price is not affected
by undue stimulus. Implicit in this definition is the consummation of a sale as of a
specified date and the passing of title from seller to buyer under conditions whereby:
-buyer and seller are typically motivated;
-both parties are well informed or well advised and acting in what they consider their
own best interests;
-a reasonable time is allowed for exposure in the open market;
-payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
-the price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale.
Exposure time is defined in USPAP as: - answerEXPOSURE TIME: estimated length of
time that the property interest being appraised would have been offered on the market
prior to the hypothetical consummation of a sale at market value on the effective date of
, the appraisal. (Comment: Exposure time is a retrospective opinion based on an analysis
of past events assuming a competitive and open market.1)
Which of the following describes or explains what is meant by "the effective date of
value" of an appraisal?
The date the appraisal report was completed
The date the appraiser affixed his/her signature to the report
The date that the opinion of value applies to
The date the appraisal was tendered to the client - answerThe date that the opinion of
value applies to
Many experienced appraisers and industry participants have expressed a belief that a
Restricted Appraisal Report takes the place of the __________ type of appraisal that
was used in the past.
Summary appraisal
Complete appraisal
Letter opinion of value
Investor's analysis - answerLetter opinion of value
Which of the following is ALWAYS an intended user of an appraisal report?
The client's attorney
Mortgage lenders
Tax assessor
The client - answerThe client
Which of the following defines the intended use of an appraisal report?
The explanation of the appraisal problem to be solved
the uses of an appraiser's reported appraisal or appraisal review assignment results as
identified by the appraiser based on communication with the client at the time of
assignment
The explanation of the appraiser's scope of work
The definition of market value included within the appraisal report - answerthe uses of
an appraiser's reported appraisal or appraisal review assignment results as identified by
the appraiser based on communication with the client at the time of assignment - The
intended use of an appraisal report is the uses of an appraiser's reported appraisal or
appraisal review assignment results as identified by the appraiser based on
communication with the client at the time of assignment (Introduction)
Which of the following describes what is meant by the date of the appraisal report?
The date the appraisal report was received by the client
The date that the opinion of value applies to
The date the property being appraised was inspected by the appraiser
The date the appraisal report was completed - answerThe date the appraisal report was
completed
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