Basic Appraisal Procedures Mckissock Questions And Answers Rated A+ New Update Assured Satisfaction

Valuation Process - Answer-Systematic set of procedures an appraiser follows to provide answers to a clients questions about real property value Appraisal Process - Answer-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 - Answer-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 - Answer-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 - Answer-Identify the characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal market value - Answer-stated as an opinion that presumes the transfer of a property as of a certain date under specific conditionsAppraisers are cautioned to - Answer-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 - Answer-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 - Answer-objective of assignment. ex: to develop an opinion of the defined value of a specified interest in real estate intended user - Answer-client and any other party as identified by name or type as users of the appraisal review report by the appraiser retrospective and prospective value - Answer-Two 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 - Answer-identify the effective date of the appraisers opinions and conclusions extraordinary assumption - Answer-an assignment specific assumption as of the effective date if which found to be false could alter the appraisers opinions or conclusions hypothetical edition - Answer-condition 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 - Answer-Accomplishing 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 - Answer-the type and extent of research and analysis or appraisal review assignmentadvisory opinion-22 - Answer-understanding 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 - Answer-determine the scope of work necessary to produce credible results in accordance with the SCOPE OF WORK RULE scope of work rule - Answer-identify 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: - Answer-the 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 - Answer-summarize the scope of work used to develop the appraisal workfile - Answer-documentation necessary to support an appraiser's analyses, opinions, and conclusions record keeping rule - Answer-an appraiser must prepare a workfile for each appraisal or appraisal review assignment workfile must include - Answer-name 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 - Answer-at least 5 hyears after peperation or at least two years after final disposition of any judicial proceeding in which had to testifyworkfile custody access and retrieval - Answer-An 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 - Answer-to prove the truth of by the presentation of evidence or testimony verification - Answer-process 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: - Answer-legally permissible, physically, possible, financially feasible, and maximally productive applicable approaches to value - Answer-cost, sales comp, income and capitalization appraoches reconciliation - Answer-come to one reasoned opinion of value at the effective date general data - Answer-data that relates to the four forces that affect real property values social economic governmental and environmental forces (macr0-level data) specific data - Answer-details about property's being appraised national association of homebuilders - Answer-does extensive research on current construction trends and figures National Association of REALTORS - Answer-trade association for real estate agents and brokers who subscribe to a code of ethics common sources of specific data: - Answer-deeds, location maps, tax maps, flood maps, assessors records, title companies, zoning, MLS deed will provide - Answer-The legal description of the property The owners of recordEasements of record Deed restrictions Chain of title land - Answer-in law the solid surface on the earth, as distinguished from water. site - Answer-Improved land or a lot in a finished state so that it is ready to be used for a specific purpose brownfield - Answer-real property for which the expansion redevelopment of the real estate may be complicated by the presence of environmental contamination that needs to be remediated to standards sales comparison - Answer-compares recent sales extraction - Answer-subtracts estimated improvement value to arrive at land value allocation - Answer-land to value ratios based on improved sales comparables subdivision development - Answer-subtracts estimated development costs from discounted sale proceeds land residual - Answer-divides up and capitalizes the income between land and improvements ground rent capitalization - Answer-capitalizes income from leased land extraction method - Answer-estimating land value in which the depreciated cost of the improvements on an improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land allocation method - Answer-estimating land value in which sales of improved properties are analyzed to establish a typical ratio of land value to total property value and this ratio is applied to the property being appraised or the comparable sale being analyzedmass appraisal - Answer-The application of computer technology and statistical techniques to the solution of appraisal problems