Basic Appraisal Procedures Mckissock| 150 questions| with complete solutions

Valuation Process CORRECT ANSWERS: Systematic set of procedures an appraiser follows to provide answers to a clients questions about real property value Appraisal Process CORRECT ANSWERS: 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 ANSWERS: 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 ANSWERS: 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 ANSWERS: 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 ANSWERS: stated as an opinion that presumes the transfer of a property as of a certain date under specific conditions Appraisers are cautioned to CORRECT ANSWERS: 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 ANSWERS: 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 purpose of the assignment CORRECT ANSWERS: objective of assignment. ex: to develop an opinion of the defined value of a specified interest in real estate intended user CORRECT ANSWERS: client and any other party as identified by name or type as users of the appraisal review report by the appraiser