McKissock - General Report Writing and Case Studies Questions and Answers

Appraisal - "(noun) The act or process of developing an opinion of value. an opinion of value; (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services."1 Report - any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of an assignment. 2 Client - "The party or parties who engage, by employment or contract, an appraiser in a specific assignment.Comment: The client may be an individual, group, or entity, and may engage and communicate with the appraiser directly or through an agent."3 Date of the Report - The date that the appraiser completed and transmitted the appraisal report to the client. It is usually - but not always - different from the effective date of value stated in the appraisal report. Effective Date - The date to which the value applies. It can be current, prospective, or retrospective. The effective date of value establishes the viewpoint from which the appraiser viewed the appraisal problem. Intended use - "the use(s) of an appraiser's reported appraisal or appraisal review assignment results, as identified by the appraiser based on communication with the client at the time of the assignment."4 Intended User - "the client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment."5 Personal Property - "Identifiable tangible objects that are considered by the general public as being 'personal' (e.g., furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all tangible property that is not classified as real estate."6Real Estate - "An identified parcel or tract of land, including improvements, if any."7 Real Property - "The interests, benefits and rights inherent in the ownership of real estate".8 This often is referred to as the "bundle of rights" associated with owning real estate. These rights include: - The right to sell the property; The right to lease or rent the property; The right to use the property; The right to give the property away; The right to enter or leave the property; and The right to refuse to do anything with the property. To determine the appropriate scope of work for the individual assignment, the appraiser must: - - Rely on the information gained in the first step of the appraisal process. Proper identification of the problem is essential. -Ensure that he or she has the knowledge, experience, and competency to accomplish this assignment. -Determine the client's expectations for this type of assignment. -Not allow the assignment conditions to limit his or her ability to arrive at a credible opinion of value, given the intended use of the appraisal. -Be able to support the decision for the level of work to be accomplished. -Be prepared to defend the research and analysis he or she decided was not required for this assignment's credible opinion of value. Ethics Rule of USPAP - "An appraiser must promote and preserve the public trust inherent in appraisal practice by observing the highest standards of professional ethics. An appraiser must comply with USPAP when obligated by law or regulation, or by agreement with the client or intended users. In addition to these requirements, an individual should comply any time that individual represents that he or she is performing the service as an appraiser."1