BASIC APPRAISAL PROCEDURES MCKISSOCK
QUESTIONS AND ANSWERS 2025
Valuation,process,-,ANSWER,A,systematic,procedure,used,in,the,valuation,of,real,property.
Client,-
,ANSWER,The,party,or,parties,who,engage,,by,employment,or,contract,,an,appraiser,in,a,specific
,assignment.
Steps,in,Defining,the,problem,-
,ANSWER,Identification,and,location,of,the,real,estate;,Identification,of,the,property,rights;,Defin
ition,of,value;,Purpose,and,intended,use,of,the,appraisal;,Effective,date,of,the,opinion,of,value;,
Any,special,limiting,conditions
Real,property,-
,ANSWER,The,interests,,benefits,,and,rights,inherent,in,the,ownership,of,real,estate.
Market,Value,-
,ANSWER,A,type,of,value,,stated,as,an,opinion,,that,presumes,the,transfer,of,a,property,(i.e.,,a,ri
ght,of,ownership,or,a,bundle,of,such,rights),,as,of,a,certain,date,,under,specific,conditions,set,fo
rth,in,the,definition,of,the,term,identified,by,the,appraiser,as,applicable,in,an,appraisal.
Intended,Use,-
,ANSWER,The,use,or,uses,of,an,appraiser's,reported,appraisal,or,appraisal,review,assignment,opi
nions,and,conclusions,,as,identified,by,the,appraiser,based,on,communication,with,the,client,at,
the,time,of,the,assignment.
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,on,the,basis,of,communication,with,the,client,at,the,t
ime,of,the,assignment.
,Effective,Date,of,the,Value,-
,ANSWER,The,____________,can,be,a,past,(retrospective),,current,or,future,(prospective),date.,
This,decision,will,be,made,in,concert,with,the,client's,needs.
Extraordinary,assumption,-
,ANSWER,An,assumption,,directly,related,to,a,specific,assignment,,as,of,the,effective,date,of,the,
assignment,results,,which,,if,found,to,be,false,,could,alter,the,appraiser's,opinions,or,conclusion
s.
Hypothetical,Condition,-
,ANSWER,A,condition,,directly,related,to,a,specific,assignment,,which,is,contrary,to,what,is,know
n,by,the,appraiser,to,exist,on,the,effective,date,of,the,assignment,results,,but,is,used,for,the,pur
pose,of,analysis.
Scope,of,work,-,ANSWER,The,type,and,extent,of,research,and,analyses,in,an,assignment.
Workfile,-
,ANSWER,Documentation,necessary,to,support,an,appraiser's,analyses,,opinions,,and,conclusion
s
Steps,in,the,Valuation,Process,-
,ANSWER,1.,Define,the,problem,2.,Determine,scope,of,work,3.,Gather,,record,,and,verify,the,dat
a,4.,Determine,the,highest,and,best,use,5.,Estimate,the,land,value,6.,Estimate,value,by,each,of,t
he,three,approaches,(if,applicable),7.,Reconcile,the,estimated,values,into,the,final,opinion,of,val
ue,8.,Report,the,final,opinion,of,value
Highest,and,Best,Use,Criteria,(in,order),-
,ANSWER,1.,Legally,permissible,2.,Physically,possible.,3.,Financially,feasible.,4.,Maximally,produc
tive
General,data,-
,ANSWER,Items,of,information,on,value,influences,that,derive,from,social,,economic,,governme
ntal,,and,environmental,forces,and,originate,outside,the,property,being,appraised.
, Specific,data,-
,ANSWER,Details,about,the,property,being,appraised,,comparable,sale,and,rental,properties,,an
d,relevant,local,market,characteristics.
U.S.,Bureau,of,the,Census,-,ANSWER,The,largest,repository,of,demographics
Professional,or,trade,associations,offering,general,data,-
,ANSWER,National,Association,of,Homebuilders;,National,Association,of,Realtors;,Appraisal,Insti
tute
Sources,of,Specific,Data,-
,ANSWER,Deeds;,Location,maps;,Tax,maps;,Flood,maps;,Assessor's,records;,Title,companies;,Zon
ing,ordinances;,Multiple,listing,services
Special,Flood,Hazard,Area,Designation,-,ANSWER,FEMA,Zones,A,or,V
Information,in,Deed,-
,ANSWER,The,legal,description,of,the,property;,The,owners,of,record;,Easements,of,record;,Dee
d,restrictions;,Chain,of,title,(when,the,property,was,purchased,and,from,whom)
Primary,intended,user,for,MLS,information,-,ANSWER,Agents,and,Brokers
Land,-
,ANSWER,The,earth's,surface,,both,land,and,water,,and,anything,that,is,attached,to,it,whether,b
y,the,course,of,nature,or,human,hands;,all,natural,resources,in,their,original,state,,e.g.,,mineral,
deposits,,wildlife,,timber,,fish,,water,,coal,deposits,,soil.
Site,-,ANSWER,Land,that,is,improved,so,that,it,is,ready,to,be,used,for,a,specific,purpose.
