Real Estate Appraisal Questions and Answers Graded A+

Real Estate Appraisal Questions and Answers Graded A+ FIRREA—Financial Institutions Reform, Recovery, and Enforcement Act of 1989 -Required banks to get appraisals on most properties. -Required that certified appraisers be used to perform appraisals -Required that states follow Appraisal Foundation requirements in order to certify appraisers. Real Estate a particular piece of land and anything that is permanently attached to it. Real Estate appraisal an opinion of value for a piece of land and its attachments What makes RE unique? immobility Appraiser Qualifications Board sets minimum qualifications for appraiser licensing and certification Appraisal Standards Board defines terms and sets minimum requirements for appraisal reports Appraiser Trainee -75 hours of classes -can only appraise under the direct supervision of a certified appraiser Licensed Real Estate Appraiser -150 hours of classes, 2000 hours experience & pass a licensure exam -can appraise single family homes (up to $1 million and 1-4 family properties up to $250,000) Certified Residential Appraiser -200 classroom hours, Associates Degree, 2500 hours experience, exam -can appraise all single family and 1-4 family properties Certified General Appraiser -300 classroom hours, Bachelor's degree, 3000 hours (1500 non-residential), exam -can appraise all types of property ****Uniform Standards of Professional Appraisal Practice (USPAP) the "rules" by which appraisers must do their jobs. (Ethical Guidelines) Economic Stimulus Act of 2008 made it easier to get certain loans and increased the scrutiny of all loans. 3 Qualifications of an Appraiser Education Experience Objectivity Sole practitioner with/without support staff Staff appraiser Appraisal company Business that acquires land/buildings Government agency Compensation Appraisers are paid based on the complexity of the assignment and amount of time and work involved. Simple Interest is the interest earned on the original principle. Principal x Rate x Time = Interest Compound Interest is the interest earned on the principle and the interest already earned. All appraisals include Description of the property An opinion of condition The utility (use) of the property An opinion