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Introduction to Commercial Appraisal Reviewed questions with actual answers.
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Introduction to Commercial AppraisalReviewed questions with actual
answers.
The type and extent of research and analyses in an appraisal or appraisal review assignment is: ANS -
the scope of work
Which of the following statements is TRUE? ANS - STANDARD 3 and STANDARD 4 are applicable to
appraisal review and apply to all disciplines within appraisal practice.
Which STANDARD pertains to the development requirements of an appraisal review? ANS - Standard 3
Which of the following is an assignment condition of an appraisal or an appraisal review? ANS -
Extraordinary Assumptions
Which of the following statements is TRUE about the purpose of an appraisal review? ANS - The
purpose of all appraisal reviews is to provide an opinion about quality.
STANDARDS 3 and 4 apply to appraisal review for the discipline(s) within appraisal practice of
__________________. ANS - All disciplines of real property, tangible personal property, and intangible
property
A reviewer may perform all of the following functions, EXCEPT: ANS - To locate every error and
deficiency in the work under review, no matter the materiality of the error or deficiency.
A good way to determine competency is for the reviewer to fully understand the client's __________
and the _______________ of the review. ANS - expectations, intended use
A reviewer is engaged to evaluate the selection and adjustment of comparable sales in the sales
comparison approach of a limited service hotel. In this scenario, the reviewer must possess: ANS -
geographical competance
, Reviewer Henry is reviewing the cost approach completed on an appraisal of a newly constructed
medical office building. This is the first review assignment that Henry has received from the law firm of
Peabody, Oriole, and Goode. In an effort to ensure future review assignments from this law firm, Henry
is overly critical of the appraisal under review. This is an example of an unacceptable review practice of:
ANS - self-preservation
In completing an appraisal review assignment, a reviewer should: ANS - focus on the purpose and
intended use of the review.
Choose the BEST answer. A reviewer may become more efficient in completing his or her own
appraisals by: ANS - building a case for the quality of an appraisal, a reviewer becomes more effective
in his or her own work.
The appraiser/reviewer must state assumptions clearly and conspicuously in an appraisal report. What
else is required with disclosing extraordinary assumptions in an appraisal report or an appraisal review
report? ANS - Any extraordinary assumption must be followed with the statement that if the
assumption is found to be false, it could alter the appraiser's opinions or conclusions
A prospective appraisal is usually required for valuations of: ANS - property interests related to
proposed developments
Form-based code (FBCs) that require exact standards to be met such as how the street will look, the
height of the building, acceptable lot coverage, etc., that apply to the subject property of an appraisal, is
an example of: ANS - relevant characteristics
Which of the following is NOT an element included in the problem identification step of the appraisal
process? ANS - the date of engagement
The relevant characteristics of the subject property of the work under review may include: ANS - any
and all of these
Which of the following statements is FALSE about intended use? ANS - The intended use of the review
is the same as that of the work under review.
, The _____________determines the proper type and definition of value to apply in an assignment. ANS
- intended use
Intended use, type and definition of value, and intended user are: ANS - assignment elements
An example of a site characteristic is: ANS - frontage
Appraiser Jackson also felt Appraiser Jet's appraisal report was in noncompliance of USPAP Standard
Rule 2-2 (xi) as pertains to "extraordinary assumptions" as follows. An extraordinary assumption may be
used in an assignment only if: ANS - The appraiser complies with the disclosure requirements set forth
in USPAP for extraordinary assumptions
Appraiser Jackson reviewed Appraiser Jet's appraisal report and felt Appraiser Jet's appraisal
development was in noncompliance of USPAP Standards Rule 1-2(f) as pertains to "extraordinary
assumptions" as follows. An extraordinary assumption may be used in an assignment only if: ANS - The
appraiser has a reasonable basis for the extraordinary assumption.
As part of Northland's scope of work, what other USPAP requirements would have been required when
developing and reporting the income analysis? ANS - Analyze comparable data to estimate
capitalization or discount rates
Did Appraiser Northland violate USPAP by accepting this assignment? ANS - No, as Appraiser
Northland could have told the client their request is an extraordinary assumption and if the appraiser
adhered to USPAP directives related to extraordinary assumptions, the appraiser could accept the
assignment.
What should have Appraiser Northland included in the reporting of value for the subject property? ANS
- All of the above
An appraisal reviewer is not able to inspect the interior of an office complex building which contains an
auditorium. The reviewer must use information regarding the office complex's physical characteristics
from: ANS - sources the appraisal reviewer reasonably believes to be reliable
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