Basic Appraisal Procedures Verified Questions and Updated Answers

True or False: The effective date of the valuation must be the date on which the appraiser inspected the subject property. - FALSE In many cases, the effective date is the date the appraiser inspects the subject property. But that is not always the case. The effective date can be any date, whether past, present, or future. "An interest or interests in real estate" is the definition of - Real Property "An assignment-specific assumption, as of the effective date, which, if found to be false, could alter the appraiser's opinions or conclusions" is the definition of - Extraordinary assumption Extraordinary assumption is defined as "an assignment-specific assumption, as of the effective date, which, if found to be false, could alter the appraiser's opinions or conclusions." The steps in the valuation process (sometimes also called the appraisal process) are: - 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 The highest and best use of a property must be: - Legally permissible Physically possible Financially feasible Maximally productive