MCKISSOCK BASIC APPRAISAL PRINCIPLES I
FINAL COMPREHENSIVE COURSE REVIEW
◉ Client.
Answer: The party or parties who engage, by employment or
contract, an appraiser in a specific assignment.
◉ Steps in Defining the problem.
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
◉ Real property.
Answer: The interests, benefits, and rights inherent in the
ownership of real estate.
◉ Market Value.
Answer: A type of value, stated as an opinion, that presumes the
transfer of a property (i.e., a right of ownership or a bundle of such
rights), as of a certain date, under specific conditions set forth in the
definition of the term identified by the appraiser as applicable in an
appraisal.
,◉ Intended Use.
Answer: The use or uses of an appraiser's reported appraisal or
appraisal review assignment opinions and conclusions, as identified
by the appraiser based on communication with the client at the time
of the assignment.
◉ Intended User.
Answer: The client and any other party as identified, by name or
type, as users of the appraisal or appraisal review report by the
appraiser on the basis of communication with the client at the time
of the assignment.
◉ Effective Date of the Value.
Answer: The ____________ can be a past (retrospective), current or
future (prospective) date. This decision will be made in concert with
the client's needs.
◉ Extraordinary assumption.
Answer: An assumption, directly related to a specific assignment, as
of the effective date of the assignment results, which, if found to be
false, could alter the appraiser's opinions or conclusions.
◉ Hypothetical Condition.
Answer: A condition, directly related to a specific assignment, which
is contrary to what is known by the appraiser to exist on the
,effective date of the assignment results, but is used for the purpose
of analysis.
◉ Scope of work.
Answer: The type and extent of research and analyses in an
assignment.
◉ Workfile.
Answer: Documentation necessary to support an appraiser's
analyses, opinions, and conclusions
◉ Steps in the Valuation Process.
Answer: 1. Define the problem 2. Determine scope of work 3. Gather,
record, and verify the data 4. Determine the highest and best use 5.
Estimate the land value 6. Estimate value by each of the three
approaches (if applicable) 7. Reconcile the estimated values into the
final opinion of value 8. Report the final opinion of value
◉ Highest and Best Use Criteria (in order).
Answer: 1. Legally permissible 2. Physically possible. 3. Financially
feasible. 4. Maximally productive
◉ General data.
, Answer: Items of information on value influences that derive from
social, economic, governmental, and environmental forces and
originate outside the property being appraised.
◉ Specific data.
Answer: Details about the property being appraised, comparable
sale and rental properties, and relevant local market characteristics.
◉ U.S. Bureau of the Census.
Answer: The largest repository of demographics
◉ Professional or trade associations offering general data.
Answer: National Association of Homebuilders; National Association
of Realtors; Appraisal Institute
◉ Sources of Specific Data.
Answer: Deeds; Location maps; Tax maps; Flood maps; Assessor's
records; Title companies; Zoning ordinances; Multiple listing
services
◉ Special Flood Hazard Area Designation.
Answer: FEMA Zones A or V
FINAL COMPREHENSIVE COURSE REVIEW
◉ Client.
Answer: The party or parties who engage, by employment or
contract, an appraiser in a specific assignment.
◉ Steps in Defining the problem.
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
◉ Real property.
Answer: The interests, benefits, and rights inherent in the
ownership of real estate.
◉ Market Value.
Answer: A type of value, stated as an opinion, that presumes the
transfer of a property (i.e., a right of ownership or a bundle of such
rights), as of a certain date, under specific conditions set forth in the
definition of the term identified by the appraiser as applicable in an
appraisal.
,◉ Intended Use.
Answer: The use or uses of an appraiser's reported appraisal or
appraisal review assignment opinions and conclusions, as identified
by the appraiser based on communication with the client at the time
of the assignment.
◉ Intended User.
Answer: The client and any other party as identified, by name or
type, as users of the appraisal or appraisal review report by the
appraiser on the basis of communication with the client at the time
of the assignment.
◉ Effective Date of the Value.
Answer: The ____________ can be a past (retrospective), current or
future (prospective) date. This decision will be made in concert with
the client's needs.
◉ Extraordinary assumption.
Answer: An assumption, directly related to a specific assignment, as
of the effective date of the assignment results, which, if found to be
false, could alter the appraiser's opinions or conclusions.
◉ Hypothetical Condition.
Answer: A condition, directly related to a specific assignment, which
is contrary to what is known by the appraiser to exist on the
,effective date of the assignment results, but is used for the purpose
of analysis.
◉ Scope of work.
Answer: The type and extent of research and analyses in an
assignment.
◉ Workfile.
Answer: Documentation necessary to support an appraiser's
analyses, opinions, and conclusions
◉ Steps in the Valuation Process.
Answer: 1. Define the problem 2. Determine scope of work 3. Gather,
record, and verify the data 4. Determine the highest and best use 5.
Estimate the land value 6. Estimate value by each of the three
approaches (if applicable) 7. Reconcile the estimated values into the
final opinion of value 8. Report the final opinion of value
◉ Highest and Best Use Criteria (in order).
Answer: 1. Legally permissible 2. Physically possible. 3. Financially
feasible. 4. Maximally productive
◉ General data.
, Answer: Items of information on value influences that derive from
social, economic, governmental, and environmental forces and
originate outside the property being appraised.
◉ Specific data.
Answer: Details about the property being appraised, comparable
sale and rental properties, and relevant local market characteristics.
◉ U.S. Bureau of the Census.
Answer: The largest repository of demographics
◉ Professional or trade associations offering general data.
Answer: National Association of Homebuilders; National Association
of Realtors; Appraisal Institute
◉ Sources of Specific Data.
Answer: Deeds; Location maps; Tax maps; Flood maps; Assessor's
records; Title companies; Zoning ordinances; Multiple listing
services
◉ Special Flood Hazard Area Designation.
Answer: FEMA Zones A or V
