Basic Appraisal Procedures Mckissock Exam Questions And Answers 100% Solved

Basic Appraisal Procedures Mckissock Exam Questions And Answers 100% Solved Valuation Process - answerSystematic set of procedures an appraiser follows to provide answers to a clients questions about real property value Appraisal Process - answer1. 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 - answerIdentification 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 - answerusually 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 - answerIdentify the characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal market value - answerstated as an opinion that presumes the transfer of a property as of a certain date under specific conditions Appraisers are cautioned to - answeridentify 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 - answeridentify 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 - answerobjective of assignment. ex: to develop an opinion of the defined value of a specified interest in real estate intended user - answerclient and any other party as identified by name or type as users of the appraisal review report by the appraiser retrospective and prospective value - answerTwo 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 - answeridentify the effective date of the appraisers opinions and conclusions extraordinary assumption - answeran assignment specific assumption as of the effective date if which found to be false could alter the appraisers opinions or conclusions hypothetical edition - answercondition 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 - answerAccomplishing 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 - answerthe type and extent of research and analysis or appraisal review assignment advisory opinion-22 - answerunderstanding 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 - answerdetermine the scope of work necessary to produce credible results in accordance with the SCOPE OF WORK RULE scope of work rule - answeridentify 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: - answerthe 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. standards rule 2-2a in USPAP - answersummarize the scope of work used to develop the appraisal workfile - answerdocumentation necessary to support an appraiser's analyses, opinions, and conclusions record keeping rule - answeran appraiser must prepare a workfile for each appraisal or appraisal review assignment workfile must include - answername of client and identity by name or type of any other users; true copies of all written reports, documented on any type of media; summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser's signed and dated certification; all other data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with USPAP how long does an appraiser have to keep his workfile - answerat least 5 hyears after peperation or at least two years after final disposition of any judicial proceeding in which had to testify workfile custody access and retrieval - answerAn appraiser must have custody of his or her workfile, or make appropriate workfile retention, access, and retrieval arrangements with the party having custody of the workfile verify - answerto prove the truth of by the presentation of evidence or testimony verification - answerprocess of validating or estab. the truth about info from another source which is critical to credibility the highest and best use of a property must be: - answerlegally permissible, physically, possible, financially feasible, and maximally productive applicable approaches to value - answercost, sales comp, income and capitalization appraoches reconciliation - answercome to one reasoned opinion of value at the effective date general data - answerdata that relates to the four forces that affect real property values social economic governmental and environmental forces (macr0-level data) specific data - answerdetails about property's being appraised