Basic Appraisal Procedures Mckissock
UPDATED Exam Questions and
CORRECT Answers
Valuation Process - Correct Answer- Systematic set of procedures an appraiser follows to
provide answers to a clients questions about real property value
Appraisal Process - Correct 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 - Correct 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 - Correct 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 - Correct 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 - Correct Answer- stated as an opinion that presumes the transfer of a property
as of a certain date under specific conditions
, Appraisers are cautioned to - Correct 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 - Correct 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 - Correct Answer- objective of assignment. ex: to develop an
opinion of the defined value of a specified interest in real estate
intended user - Correct 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 - Correct 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 - Correct Answer- identify the effective date of the appraisers
opinions and conclusions
extraordinary assumption - Correct 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 - Correct 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 - Correct 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 - Correct Answer- the type and extent of research and analysis or
appraisal review assignment
UPDATED Exam Questions and
CORRECT Answers
Valuation Process - Correct Answer- Systematic set of procedures an appraiser follows to
provide answers to a clients questions about real property value
Appraisal Process - Correct 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 - Correct 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 - Correct 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 - Correct 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 - Correct Answer- stated as an opinion that presumes the transfer of a property
as of a certain date under specific conditions
, Appraisers are cautioned to - Correct 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 - Correct 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 - Correct Answer- objective of assignment. ex: to develop an
opinion of the defined value of a specified interest in real estate
intended user - Correct 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 - Correct 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 - Correct Answer- identify the effective date of the appraisers
opinions and conclusions
extraordinary assumption - Correct 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 - Correct 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 - Correct 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 - Correct Answer- the type and extent of research and analysis or
appraisal review assignment
