BASIC APPRAISAL PROCEDURES
MCKISSOCK EXAM QUESTIONS WITH
CORRECT ANSWERS
◉ Appraisal Process. Answer: 1. Define Problem
2. Determine scope of work
3. Gather Record & verify data
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 conditions
◉ Appraisers 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
equal to cash; 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
MCKISSOCK EXAM QUESTIONS WITH
CORRECT ANSWERS
◉ Appraisal Process. Answer: 1. Define Problem
2. Determine scope of work
3. Gather Record & verify data
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 conditions
◉ Appraisers 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
equal to cash; 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
