Basic Appraisal Procedures Exam Questions and Answers

Basic Appraisal Procedures Exam Questions and Answers Assumption -Answer-That which is taken to be true Effective Date -Answer-The context for the appraiser's opinions and conclusions. Effective dates can be current, retrospective, or prospective Exposure Time -Answer-Estimated length of time a property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. 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 General Data -Answer-Information that covers the forces that affect property values, but are not directly related to a particular piece of property. General data covers economic, governmental, social, and physical factors, and can be local or national Hypothetical Condition -Answer-A condition, 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 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 Jurisdictional Exception -Answer-An assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP Limiting conditions -Answer-Statements intended to protect the appraiser and inform the client and other intended users of the appraisal report of limitations placed by the appraiser. Partial interest -Answer-Any interest in real estate one may have other than the full bundle of rights. Multiple listing service -Answer-A listing service whereby local member brokers agreed to share listings and commissions on property sold jointly Reconciliation -Answer-Analyzing the values derived from the different appraisal approaches to arrive at the final opinion of value. Scope of work -Answer-The type and extent of research and analysis in an appraisal or appraisal review assignment Specific data -Answer-Information that is relevant to the subject property. Two types of specific data are subject property data and comparable data Subject property data -Answer-Data that includes information on the subject property site improvements Comparative purpose data -Answer-Specific data that includes information about comparable sale properties, as well as income and cost information USPAP -Answer-Professional appraisal standards promulgated by the appraisal foundation and widely recognized throughout the United States as accepted standards of appraisal practice Workfile -Answer-The documentation necessary to support the appraiser's analysis, opinions, and conclusions Data Analysis -Answer-Market Analysis, Highest and best use analysis Appurtenant easement -Answer-An easement the burdens one piece of land for the benefit of another Area variance -Answer-An exception that allows a property owner to legally deviate from certain building codes or setback requirements Building density -Answer-A limit on the number of buildings that maybe constructed within a given space Balance -Answer-A condition that exists in the real estate market when they're slightly more homes available than buyers Business cycles -Answer-General swings in business, resulting in an expanded and contracting activity during different phases of the cycle Conditional -Answer-A land use the does not comply with the general zoning rules for the zoning which is located, but is permitted because it benefits the