©FYNDLAY 2025 ALL RIGHTS RESERVED
Basic Appraisal Procedures – McKissock
Exam Questions and Answers 100% Pass
Valuation process - ANS A systematic procedure used in the valuation of real property.
Client - ANS The party or parties who engage, by employment or contract, an appraiser in a
specific assignment.
Steps in Defining the problem - ANS 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
Real property - ANS The interests, benefits, and rights inherent in the ownership of real
estate.
Market Value - ANS A type of value, stated as an opinion, that presumes the transfer of a
property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under
specific conditions set forth in the definition of the term identified by the appraiser as
applicable in an appraisal.
Intended Use - ANS 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 - ANS 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.
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, ©FYNDLAY 2025 ALL RIGHTS RESERVED
Effective Date of the Value - ANS The ____________ can be a past (retrospective), current or
future (prospective) date. This decision will be made in concert with the client's needs.
Extraordinary assumption - ANS 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.
Hypothetical Condition - ANS A condition, directly 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.
Scope of work - ANS The type and extent of research and analyses in an assignment.
Workfile - ANS Documentation necessary to support an appraiser's analyses, opinions, and
conclusions
Steps in the Valuation Process - ANS 1. Define the problem 2. Determine scope of work 3.
Gather, record, and verify the data 4. Determine the highest and best use 5. Estimate the land
value 6. Estimate value by each of the three approaches (if applicable) 7. Reconcile the
estimated values into the final opinion of value 8. Report the final opinion of value
Highest and Best Use Criteria (in order) - ANS 1. Legally permissible 2. Physically possible. 3.
Financially feasible. 4. Maximally productive
General data - ANS Items of information on value influences that derive from social,
economic, governmental, and environmental forces and originate outside the property being
appraised.
Specific data - ANS Details about the property being appraised, comparable sale and rental
properties, and relevant local market characteristics.
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U.S. Bureau of the Census - ANS The largest repository of demographics
Professional or trade associations offering general data - ANS National Association of
Homebuilders; National Association of Realtors; Appraisal Institute
Sources of Specific Data - ANS Deeds; Location maps; Tax maps; Flood maps; Assessor's
records; Title companies; Zoning ordinances; Multiple listing services
Special Flood Hazard Area Designation - ANS FEMA Zones A or V
Information in Deed - ANS The legal description of the property; The owners of record;
Easements of record; Deed restrictions; Chain of title (when the property was purchased and
from whom)
Primary intended user for MLS information - ANS Agents and Brokers
Land - ANS The earth's surface, both land and water, and anything that is attached to it
whether by the course of nature or human hands; all natural resources in their original state,
e.g., mineral deposits, wildlife, timber, fish, water, coal deposits, soil.
Site - ANS Land that is improved so that it is ready to be used for a specific purpose.
Brownfield - ANS An industrial or commercial site that is abandoned or underused because it
suffers from real or perceived continuing contamination.
Site Valuation Methods - ANS SALES COMPARISON; EXTRACTION; ALLOCATION; SUBDIVISION
DEVELOPMENT; LAND RESIDUAL; GROUND RENT CAPITALIZATION
Extraction Method - ANS A method of estimating land value in which the depreciated cost of
the improvements on the improved property is estimated and deducted from the total sale
©FYNDLAY 3
Basic Appraisal Procedures – McKissock
Exam Questions and Answers 100% Pass
Valuation process - ANS A systematic procedure used in the valuation of real property.
Client - ANS The party or parties who engage, by employment or contract, an appraiser in a
specific assignment.
Steps in Defining the problem - ANS 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
Real property - ANS The interests, benefits, and rights inherent in the ownership of real
estate.
Market Value - ANS A type of value, stated as an opinion, that presumes the transfer of a
property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under
specific conditions set forth in the definition of the term identified by the appraiser as
applicable in an appraisal.
Intended Use - ANS 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 - ANS 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.
©FYNDLAY 1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
Effective Date of the Value - ANS The ____________ can be a past (retrospective), current or
future (prospective) date. This decision will be made in concert with the client's needs.
Extraordinary assumption - ANS 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.
Hypothetical Condition - ANS A condition, directly 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.
Scope of work - ANS The type and extent of research and analyses in an assignment.
Workfile - ANS Documentation necessary to support an appraiser's analyses, opinions, and
conclusions
Steps in the Valuation Process - ANS 1. Define the problem 2. Determine scope of work 3.
Gather, record, and verify the data 4. Determine the highest and best use 5. Estimate the land
value 6. Estimate value by each of the three approaches (if applicable) 7. Reconcile the
estimated values into the final opinion of value 8. Report the final opinion of value
Highest and Best Use Criteria (in order) - ANS 1. Legally permissible 2. Physically possible. 3.
Financially feasible. 4. Maximally productive
General data - ANS Items of information on value influences that derive from social,
economic, governmental, and environmental forces and originate outside the property being
appraised.
Specific data - ANS Details about the property being appraised, comparable sale and rental
properties, and relevant local market characteristics.
©FYNDLAY 2
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
U.S. Bureau of the Census - ANS The largest repository of demographics
Professional or trade associations offering general data - ANS National Association of
Homebuilders; National Association of Realtors; Appraisal Institute
Sources of Specific Data - ANS Deeds; Location maps; Tax maps; Flood maps; Assessor's
records; Title companies; Zoning ordinances; Multiple listing services
Special Flood Hazard Area Designation - ANS FEMA Zones A or V
Information in Deed - ANS The legal description of the property; The owners of record;
Easements of record; Deed restrictions; Chain of title (when the property was purchased and
from whom)
Primary intended user for MLS information - ANS Agents and Brokers
Land - ANS The earth's surface, both land and water, and anything that is attached to it
whether by the course of nature or human hands; all natural resources in their original state,
e.g., mineral deposits, wildlife, timber, fish, water, coal deposits, soil.
Site - ANS Land that is improved so that it is ready to be used for a specific purpose.
Brownfield - ANS An industrial or commercial site that is abandoned or underused because it
suffers from real or perceived continuing contamination.
Site Valuation Methods - ANS SALES COMPARISON; EXTRACTION; ALLOCATION; SUBDIVISION
DEVELOPMENT; LAND RESIDUAL; GROUND RENT CAPITALIZATION
Extraction Method - ANS A method of estimating land value in which the depreciated cost of
the improvements on the improved property is estimated and deducted from the total sale
©FYNDLAY 3
