Basic appraisal procedures mckissock exam already graded a

Basic Appraisal Procedures – McKissock Exam
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Valuation process k




A systematic procedure used in the valuation of real property.
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Client
The party or parties who engage, by employment or contract, an appraiser in as
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pecific assignment.
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Steps in Defining the problem
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Identification and location of the real estate; Identification of the property rights;D
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efinition of value; Purpose and intended use of the appraisal; Effective date of the
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opinion of value; Any special limiting conditions
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Real property
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The interests, benefits, and rights inherent in the ownership of real estate.
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Market Value k




A type of value, stated as an opinion, that presumes the transfer of a property (i.e.,
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a right of ownership or a bundle of such rights), as of a certain date, under
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,specific conditions set forth in the definition of the term identified by theapprais
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er as applicable in an appraisal.
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Intended Use k




The use or uses of an appraiser's reported appraisal or appraisal review assignm
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ent opinions and conclusions, as identified by the appraiser based oncommunica
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tion with the client at the time of the assignment.
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Intended User k




The client and any other party as identified, by name or type, as users of theappr
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aisal or appraisal review report by the appraiser on the basis of communication
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with the client at the time of the assignment.
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Effective Date of the Value k k k k




The
can be a past (retrospective), current or future (prospective)d k k k k k k k k k


ate. This decision will be made in concert with the client's needs.
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Extraordinary assumption k




An assumption, directly related to a specific assignment, as of the effective dateo
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f the assignment results, which, if found to be false, could alter the appraiser'sopi
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nions or conclusions. k k

,Hypothetical Condition k




A condition, directly related to a specific assignment, which is contrary to what isk
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nown by the appraiser to exist on the effective date of the assignment results, but i
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s used for the purpose of analysis.
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Scope of work k k




The type and extent of research and analyses in an assignment.
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Workfile
Documentation necessary to support an appraiser's analyses, opinions, andconclusio
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ns




Steps in the Valuation Process
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1. Define the problem 2. Determine scope of work 3. Gather, record, and verifyth
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e data 4. Determine the highest and best use 5. Estimate the land value 6. Estima
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te value by each of the three approaches (if applicable) 7. Reconcile the estimate
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d values into the final opinion of value 8. Report the final opinion of value
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Highest and Best Use Criteria (in order)
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1. Legally permissible 2. Physically possible. 3. Financially feasible. 4. Maximallyprod
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uctive

, General data k




Items of information on value influences that derive from social, economic, govern
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mental, and environmental forces and originate outside the property beingapprais
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ed.




Specific data k




Details about the property being appraised, comparable sale and rentalp
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roperties, and relevant local market characteristics.
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U.S. Bureau of the Census
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The largest repository of demographics
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Professional or trade associations offering general data
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National Association of Homebuilders; National Association of Realtors; AppraisalIns
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titute




Sources of Specific Data
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Deeds; Location maps; Tax maps; Flood maps; Assessor's records; Titlecompanie
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s; Zoning ordinances; Multiple listing services
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