MCKISSOCK USPAP CHAPTER 7 EXAM WITH COMPLETE SOLUTIONS (LATEST UPDATES)

MCKISSOCK USPAP CHAPTER 7 EXAM WITH COMPLETE SOLUTIONS (LATEST UPDATES) Exposure Time - Answer-Estimated length of time the property interest being appraiser would have been offered on the market prior to a hypothetical consummation of a sale at market value on the effective date of the appraisal When does exposure time end? - Answer-Exposure time ends on the effective date of the appraisal When does marketing time begin? - Answer-Marketing time begins on the effective date of the appraisal and extends into the future Standard Rule 1-2 (d) - Answer-The appraiser must identify the effective date of the appraiser's opinions and conclusions Standard Rule 1-2 (e) - Answer-An appraiser must identify the characteristics of the property that are relevant to the type and definition of value and intended use of appraisal Purpose of inspection - Answer-To gather information about the characteristics of the property that are relevant to its value Minimum level of inspection - Answer-USPAP does not require an inspection Standard Rule 1-2 (f) - Answer-An Appraiser must identify any extraordinary assumptions necessary in the assignment When can you use an extraordinary assumption? - Answer-Can be used only if... -It is required to properly develop credible opinions and conclusions -The appraiser has reasonable basis for the extraordinary assumption -Use of the extraordinary assumption results in a credible analysis -The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions Standard Rule 1-2 (g) - Answer-An appraiser must identify any hypothetical conditions necessary to the assignment Standard Rule 1-2 (h) - Answer-An appraiser must determine the scope of work necessary to produce credible assignment results in accordance with the scope of work rule Standard Rule 1-3 - Answer-When necessary for credible assignment results in developing a market value opinion, an appraiser must a) Identify and analyze the effect on use and value of existing land use regulations, reasonably probably modifications of such land use regulations, economic supply and demand, the physical adaptability of the real estate, and market area trends and b) Develop an opinion of the highest and best use of real estate Standard rule 1-4 - Answer-In developing a real property appraisal, an appraiser must collect, verify, and analyze all information necessary for credible assignment results Standard Rule 1-4 (a) - Answer-When a sales comparison approach is necessary for credible assignment results, an appraiser must analyze such comparable sales data as are available to indicate a value conclusion Standard Rule 1-4 (b) - Answer-When a cost approach is necessary for credible assignment results the appraiser must: -Develop an opinion of site value by an appropriate appraisal method or technique -Analyze such comparable cost data as are available to estimate the cost new of the improvements (if any) -Analyze such comparable data as are available to estimate the difference between the cost new and the present worth of the improvements Standard Rule 1-4 (c) - Answer-(i) analyze such comparable rental data as are available and/or the potential earnings capacity of the property to estimate the gross income potential of the property; (ii) analyze such comparable operating expense data as are available to estimate the operating expenses of the property; (iii) analyze such comparable data as are available to estimate rates of capitalization and/or rates of discount; and (iv) base projections of future rent and/or income potential and expenses on reasonably clear and appropriate evidence Standard Rule 1-4 (D) - Answer-When developing an opinion of the value of a leased fee estate or a leasehold estate, an appraiser must analyze the effect on value, if any, of the terms and conditions of the lease(s). Standard Rule 1-4 (e) - Answer-When analyzing the assemblage of the various estates or component parts of a property, an appraiser must analyze the effect on value, if any, of the assemblage. An appraiser must refrain from valuing the whole solely by adding together the individual values of the various estates or component parts. Standard Rule 1-4 (f) - Answer-When analyzing anticipated public or private improvements, located on or off the site, an appraiser must analyze the effect on value, if any, of such anticipated improvements to the extent they are reflected in market actions. Standard Rule 1-4 (g) - Answer-When personal property, trade fixtures, or intangible items are included in the appraisal, the appraiser must analyze the effect on value of such non-real property items. What requirements are included in Standard 1? - Answer-Requirements that are specific to the development of real property appraisal assignments are found in Standard 1 General statement in beginning of standard 1 - Answer-In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible appraisal How many rules are there in Standard 1? - Answer-Six Standard rule 1 - Answer-1. Appraiser must be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal 2. Not commit a substantial error of omission or commission that significantly affects an appraisal 3. Not render appraisal services in a careless or negligent manner, such as by making a series or errors, that although individually might not significantly affect the results of an appraisal, in the aggregate affects the credibility of those results Standard Rule 1.2 (a) - Answer-An appraiser must identify the client and other intended users Standard Rule 1.2 (b) - Answer-An appraiser must identify the intended use of the appraiser's opinions and conclusions Standard Rule 1.2 (c) - Answer-An appraiser must identify the type and definition of value, and, if the value opinion to be developed is market value, ascertain whether the value or to be the most probable price in specific terms.