Basic Appraisal Procedures Study Guide

Basic Appraisal Procedures Study Guide The appraiser -Answer-Who is responsible for identifying the intended use of an appraisal? Valuation process -Answer-A step-by-step procedure that can be applied to any type of appraisal assignment. No -Answer-Does an appraiser's client always have to directly engage him? False -Answer-The effective date of the valuation must be the date on which the appraiser inspected the subject property. Maximally productive -Answer-In highest and best use analysis, this is applied last. Workfile -Answer-What must be in existence prior to the issuance of a written oral report? Scope of Work -Answer-The type and extent of research and analysis in an assignment. Highest and best use -Answer-Not a subset in defining the problem. Report the final opinion of value -Answer-The last step in the valuation process. Credible assignment results -Answer-According to the scope of work rule, the appraiser must be prepared to demonstrate that the scope of work is sufficive to produce what? Intended use -Answer-The credibility of assignment results is always measured in the context of ____________. Workfile -Answer-Documentation necessary to support an appraiser's analysis, opinions, and conclusions. Postal address -Answer-This is not an appropriate source for a legal description. Present, past, or future date -Answer-The effective date of value can be ________________________________. Purpose -Answer-The objective for an assignment is its __________. General Data -Answer-Outside the property being appraised. Social, economic, governmental, environmental -Answer-General data Specific data -Answer-Property being appraised Data sources -Answer-Government, trade association, utility companies, school districts, universities, dept of transportation, planning agencies, chambers of commerce, MLS Government data source -Answer-National, state, county, local--- , , (Bureau of Economic Analysis), , Trade association examples -Answer-NAHB, , appraisal organizations, NAR Specific data -Answer-When completing an appraisal assignment, comps sales info that the appraiser gathers would be considered _______________. US Bureau of the Census -Answer-The largest source for demographic info. General data -Answer-Information on tax rates in an area is considered: Specific Data -Answer-Deed, location maps, zoning ordinances, MLS Deed -Answer-Legal description, owners of record, easements of record, deed restrictions, chain of title. Usually filed at courthouse. Location maps -Answer-Road maps, location and comps, aerial, topographic, , , , tax maps, flood maps (, ) , zoning maps Courthouse or -Answer-Where can you find zoning ordinances? Federal Emergency Management Agency -Answer-FEMA Zone C -Answer-Not a special flood hazard area (SPFHA) on a FEMA map. Zones A & V -Answer-Special flood hazard areas on a FEMA map. Land -Answer-The earth's surface both land and water and anything that is attached to it whether by the course of native or human hands, all natural resources in their original state; e.g. manual 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. Site -Answer-What do most appraisers value more than land (combo). Cost approach, assessment and taxation, condemnation appraisals, certain income capitalized methods, highest and best use analysis -Answer-Separate valuations of land and improvements may be required with the following: Cost approach -Answer-Summation approach Cost approach -Answer-Two components: Site and improvements. Start with the cost to build them new and subtract depreciation. Assessment and taxation -Answer-Land and total value Condemnation appraisals -Answer-When a municipality exercises p