Exam (elaborations) basic appraisal procedures

Exam (elaborations) basic appraisal procedures Chapter 1: "An assignment-specific assumption, as of the effective date, which, if found to be false, could alter the appraiser's opinions or conclusions" is the definition of extraordinary assumption hypothetical condition assumption retrospective value - ANSWER extraordinary assumption Chapter 1: A step-by-step procedure that can be applied to any type of appraisal assignment is the income approach the valuation process discounted cash flow analysis multiple regression analysis - ANSWER the valuation process Chapter 1: True or False: An appraiser's client must always directly engage the appraiser. - ANSWER False Chapter 1: Who is responsible for identifying the intended use of an appraisal? the client the intended users the appraiser the appraisal management company - ANSWER the appraiser Chapter 1: An appraisal report must contain sufficient information to allow ________ to understand the scope of work. other appraisers state enforcement agencies anyone intended users - ANSWER intended users Chapter 1: True or False: A workfile must be in existence prior to the issuance of a written or oral report. - ANSWER True Chapter 1: True or False: Real property appraisal reports may be written or oral. - ANSWER True Chapter 1: "Documentation necessary to support an appraiser's analyses, opinions, and conclusions" is the appraiser's workfile scope of work assignment conditions extraordinary assumption - ANSWER workfile Chapter 1: Steps of 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 Chapter 1: What is the first step in the valuation process? List the data needed Estimate land value Define the problem Determine the scope of work - ANSWER Define the problem Chapter 1: The objective for an assignment is its highest and best use purpose lending potential hypothetical condition - ANSWER purpose Chapter 1: An appraiser observes that an underground tank is leaking. An appraisal could be done of the property in its "as is" contaminated condition or could be appraised under the _______________ that the property is free of contamination.