Basic Appraisal Procedures Mckissock
Basic Appraisal Procedures McKissock
Exam Solved 100% Updated 2025
Valuation Process -Correct Answer ✔Systematic set of procedures an appraiser follows
to provide answers to a clients questions about real property value
Appraisal Process -Correct Answer ✔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 -Correct Answer ✔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 -Correct Answer ✔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 -Correct Answer ✔Identify the characteristics of the
property that are relevant to the type and definition of value and intended use of the
appraisal
market value -Correct Answer ✔stated as an opinion that presumes the transfer of a
property as of a certain date under specific conditions
Appraisers are cautioned to -Correct Answer ✔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 -Correct Answer ✔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
Basic Appraisal Procedures McKissock
, Basic Appraisal Procedures Mckissock
purpose of the assignment -Correct Answer ✔objective of assignment. ex: to develop an
opinion of the defined value of a specified interest in real estate
intended user -Correct Answer ✔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 -Correct Answer ✔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
standards 1-2d of USPAP -Correct Answer ✔identify the effective date of the appraisers
opinions and conclusions
extraordinary assumption -Correct Answer ✔an assignment specific assumption as of
the effective date if which found to be false could alter the appraisers opinions or
conclusions
hypothetical edition -Correct Answer ✔condition directly related to specific assignment
which is contrary to what is known by the appraiser to exist on the effective date of
assignment results but is used for the purpose of analysis
Advisory opinions-22 os USPAP -Correct Answer ✔Accomplishing the first four action
steps (SR 1-2(a) through (d))... ...provides the basis for deciding which of the property's
characteristics are relevant in the assignment
determine scope of work -Correct Answer ✔the type and extent of research and
analysis or appraisal review assignment
advisory opinion-22 -Correct Answer ✔understanding whihc analysis methods and
techniques are necessary and what data are necessary to correctly complete the
analysis is an integral part of the scope of work decision
standards rule 1-2h of USPAP -Correct Answer ✔determine the scope of work
necessary to produce credible results in accordance with the SCOPE OF WORK RULE
scope of work rule -Correct Answer ✔identify problem; determine and perform the
scope of work necessary to develop credible assignment results; disclose scope of work
in the report
scope of work includes but is not limited to: -Correct Answer ✔the extent to which the
property is identified;
the extent to which tangible property is inspected;
the type and extent of data researched; and
the type and extent of analyses applied to arrive at opinions or conclusions.
Basic Appraisal Procedures McKissock
Basic Appraisal Procedures McKissock
Exam Solved 100% Updated 2025
Valuation Process -Correct Answer ✔Systematic set of procedures an appraiser follows
to provide answers to a clients questions about real property value
Appraisal Process -Correct Answer ✔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 -Correct Answer ✔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 -Correct Answer ✔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 -Correct Answer ✔Identify the characteristics of the
property that are relevant to the type and definition of value and intended use of the
appraisal
market value -Correct Answer ✔stated as an opinion that presumes the transfer of a
property as of a certain date under specific conditions
Appraisers are cautioned to -Correct Answer ✔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 -Correct Answer ✔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
Basic Appraisal Procedures McKissock
, Basic Appraisal Procedures Mckissock
purpose of the assignment -Correct Answer ✔objective of assignment. ex: to develop an
opinion of the defined value of a specified interest in real estate
intended user -Correct Answer ✔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 -Correct Answer ✔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
standards 1-2d of USPAP -Correct Answer ✔identify the effective date of the appraisers
opinions and conclusions
extraordinary assumption -Correct Answer ✔an assignment specific assumption as of
the effective date if which found to be false could alter the appraisers opinions or
conclusions
hypothetical edition -Correct Answer ✔condition directly related to specific assignment
which is contrary to what is known by the appraiser to exist on the effective date of
assignment results but is used for the purpose of analysis
Advisory opinions-22 os USPAP -Correct Answer ✔Accomplishing the first four action
steps (SR 1-2(a) through (d))... ...provides the basis for deciding which of the property's
characteristics are relevant in the assignment
determine scope of work -Correct Answer ✔the type and extent of research and
analysis or appraisal review assignment
advisory opinion-22 -Correct Answer ✔understanding whihc analysis methods and
techniques are necessary and what data are necessary to correctly complete the
analysis is an integral part of the scope of work decision
standards rule 1-2h of USPAP -Correct Answer ✔determine the scope of work
necessary to produce credible results in accordance with the SCOPE OF WORK RULE
scope of work rule -Correct Answer ✔identify problem; determine and perform the
scope of work necessary to develop credible assignment results; disclose scope of work
in the report
scope of work includes but is not limited to: -Correct Answer ✔the extent to which the
property is identified;
the extent to which tangible property is inspected;
the type and extent of data researched; and
the type and extent of analyses applied to arrive at opinions or conclusions.
Basic Appraisal Procedures McKissock
