Basic Appraisal Procedures Mckissock | 149 Questions and Answers(A+ Solution guide)

Valuation Process - Systematic set of procedures an appraiser follows to provide answers to a clients questions about real property value Appraisal Process - 1. Define Problem 2. Determine scope of work 3. Gather Record & verify dat 4. determine highest and best use 5. estimate land value 6. est. value by all three approaches 7. Reconcile est. value into final opinion value 8. report the final opinion defining problem - 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 identification and location of the real estate - usually with a legal description (metes and bounds, rectangular survey, lot and block) identify the characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal Standards rule 1-2E of USPAP - Identify the characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal market value - stated as an opinion that presumes the transfer of a property as of a certain date under specific conditionsAppraisers are cautioned to - identify the exact definition of market value and its authority applicable in each appraisal completed for the purpose of market value Standards 1-2c of USPAP -identify type of value, if opinion to be developed market value, ascertain whether the value is to be the most probable price: terms of cash; terms of financial arrangements equ. to cahs; other terms; if not market value must be clearly identified purpose of the assignment - objective of assignment. ex: to develop an opinion of the defined value of a specified interest in real estate intended user - client and any other party as identified by name or type as users of the appraisal review report by the appraiser retrospective and prospective value - Two dates are essential to an appraisal report. Standards Rules 2-2(a)(vi) and 2-2(b)(vi) and 8-2(a)(vi) and 8-2(b)(vi) require that each appraisal report specify the effective date of the appraisal and the date of the report