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Basic Appraisal Procedures 30 Hours questions with actual answers.
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Basic Appraisal Procedures 30 Hours questions with actual answers.
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Basic Appraisal Procedures 30 Hoursquestions with actual answers.
Note:
The steps in the valuation process (sometimes also called the appraisal process) are:
1. Define the problem
2. Determine scope of work
3. Gather, record, and verify the data
4. Determine the highest and best use
5. Estimate the land value
6. Estimate value by each of the three approaches (if applicable)
7. Reconcile the estimated values into the final opinion of value
8. Report the final opinion of value ANS -
Note:
Defining the Problem
Different texts identify various sub-steps in differing ways, but they generally include:
Identification and location of the real estate
Identification of the property rights
Definition of value
Purpose and intended use of the appraisal
Effective date of the opinion of value
Any special limiting conditions
According to Standards Rule 1-2, of the 2020-2021 USPAP:
,"In developing a real property appraisal, an appraiser must:
(a) identify the client and other intended users;
(b) identify the intended use of the appraiser's opinions and conclusions...
(c) identify the type and definition of value...
(d) identify the effective date of the appraiser's opinions and conclusions ...
(e) identify, from sources the appraiser reasonably believes to be reliable, the characteristics of the
property that are relevant to the type and definition of value and intended use of the appraisal:...
(f) identify an ANS -
Note:
The highest and best use of a property must be:
Legally permissible
Physically possible
Financially feasible
Maximally productive
These are the four criteria for highest and best use. ANS -
Note:
There are three commonly recognized approaches to value. They are:
Cost Approach
Sales Comparison Approach
Income Capitalization Approach ANS -
An appraiser must be prepared to demonstrate that the scope of work is sufficient to produce
credible assignments results
,a value conclusion that is within 10% of the sale price
the exact, true value of the subject property
the same results every time ANS - An appraiser must be prepared to demonstrate that the scope of
work is sufficient to produce
credible assignments results
What appraisal term is defined as "The type of data and the extent of research and analyses"?
assumption
hypothetical condition
scope of work
workfile ANS - What appraisal term is defined as "The type of data and the extent of research and
analyses"?
scope of work
"Documentation necessary to support an appraiser's analyses, opinions, and conclusions" is the
appraiser's
workfile
scope of work
assignment conditions
extraordinary assumption ANS - "Documentation necessary to support an appraiser's analyses,
opinions, and conclusions" is the appraiser's
workfile
Note:
We worked our way through the valuation process, step by step. The eight steps included:
Define the problem
, Determine scope of work
Gather, record, and verify the data
Determine the highest and best use
Estimate the land value
Estimate value by each of the three approaches (if applicable)
Reconcile the estimated values into the final opinion of value
Report the final opinion of value
Step one included many sub-steps such as:
Identification and location of the real estate
Identification of the property rights
Definition of value
Purpose and intended use of the appraisal
Effective date of the opinion of value
Any special limiting conditions ANS -
The valuation process is a systematic procedure employed to provide the answer to a(n) ________
question about the value of __________.
appraiser's, real property
client's, real property
appraiser's, real estate
intended user's, an appraisal ANS - client's, real property
The intended user of an appraisal is the ________ and any other user, as identified by _________.
lender, name
client, name
lender, name or type
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