BASIC APPRAISAL PROCEDURES
Assumption - Answers-That which is taken to be true
Effective Date - Answers-The context for the appraiser's opinions and conclusions.
Effective dates can be current, retrospective, or prospective
Exposure Time - Answers-Estimated length of time a property interest being appraised
would have been offered on the market prior to the hypothetical consummation of a sale
at market value on the effective date of the appraisal.
Extraordinary Assumption - Answers-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
Intended User - Answers-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
Jurisdictional Exception - Answers-An assignment condition established by applicable
law or regulation, which precludes an appraiser from complying with a part of USPAP
Limiting conditions - Answers-Statements intended to protect the appraiser and inform
the client and other intended users of the appraisal report of limitations placed by the
appraiser.
Partial interest - Answers-Any interest in real estate one may have other than the full
bundle of rights.
Multiple listing service - Answers-A listing service whereby local member brokers agreed
to share listings and commissions on property sold jointly
Reconciliation - Answers-Analyzing the values derived from the different appraisal
approaches to arrive at the final opinion of value.
Scope of work - Answers-The type and extent of research and analysis in an appraisal
or appraisal review assignment
Specific data - Answers-Information that is relevant to the subject property. Two types of
specific data are subject property data and comparable data
Subject property data - Answers-Data that includes information on the subject property
site improvements
Comparative purpose data - Answers-Specific data that includes information about
comparable sale properties, as well as income and cost information
, USPAP - Answers-Professional appraisal standards promulgated by the appraisal
foundation and widely recognized throughout the United States as accepted standards
of appraisal practice
Workfile - Answers-The documentation necessary to support the appraiser's analysis,
opinions, and conclusions
Data Analysis - Answers-Market Analysis, Highest and best use analysis
General Data - Answers-Information that covers the forces that affect property values,
but are not directly related to a particular piece of property. General data covers
economic, governmental, social, and physical factors, and can be local or national
Hypothetical Condition - Answers-A condition, 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
Intended Use - Answers-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
Appurtenant easement - Answers-An easement the burdens one piece of land for the
benefit of another
Area variance - Answers-An exception that allows a property owner to legally deviate
from certain building codes or setback requirements
Building density - Answers-A limit on the number of buildings that maybe constructed
within a given space
Balance - Answers-A condition that exists in the real estate market when they're slightly
more homes available than buyers
Business cycles - Answers-General swings in business, resulting in an expanded and
contracting activity during different phases of the cycle
Conditional - Answers-A land use the does not comply with the general zoning rules for
the zoning which is located, but is permitted because it benefits the public. This is also
called a special exception
Covenant - Answers-1. A Contract
2. A promise.
3. A Guarantee
4. A restrictive covenant
Seen in a document such as a deed or a lease.
Assumption - Answers-That which is taken to be true
Effective Date - Answers-The context for the appraiser's opinions and conclusions.
Effective dates can be current, retrospective, or prospective
Exposure Time - Answers-Estimated length of time a property interest being appraised
would have been offered on the market prior to the hypothetical consummation of a sale
at market value on the effective date of the appraisal.
Extraordinary Assumption - Answers-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
Intended User - Answers-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
Jurisdictional Exception - Answers-An assignment condition established by applicable
law or regulation, which precludes an appraiser from complying with a part of USPAP
Limiting conditions - Answers-Statements intended to protect the appraiser and inform
the client and other intended users of the appraisal report of limitations placed by the
appraiser.
Partial interest - Answers-Any interest in real estate one may have other than the full
bundle of rights.
Multiple listing service - Answers-A listing service whereby local member brokers agreed
to share listings and commissions on property sold jointly
Reconciliation - Answers-Analyzing the values derived from the different appraisal
approaches to arrive at the final opinion of value.
Scope of work - Answers-The type and extent of research and analysis in an appraisal
or appraisal review assignment
Specific data - Answers-Information that is relevant to the subject property. Two types of
specific data are subject property data and comparable data
Subject property data - Answers-Data that includes information on the subject property
site improvements
Comparative purpose data - Answers-Specific data that includes information about
comparable sale properties, as well as income and cost information
, USPAP - Answers-Professional appraisal standards promulgated by the appraisal
foundation and widely recognized throughout the United States as accepted standards
of appraisal practice
Workfile - Answers-The documentation necessary to support the appraiser's analysis,
opinions, and conclusions
Data Analysis - Answers-Market Analysis, Highest and best use analysis
General Data - Answers-Information that covers the forces that affect property values,
but are not directly related to a particular piece of property. General data covers
economic, governmental, social, and physical factors, and can be local or national
Hypothetical Condition - Answers-A condition, 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
Intended Use - Answers-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
Appurtenant easement - Answers-An easement the burdens one piece of land for the
benefit of another
Area variance - Answers-An exception that allows a property owner to legally deviate
from certain building codes or setback requirements
Building density - Answers-A limit on the number of buildings that maybe constructed
within a given space
Balance - Answers-A condition that exists in the real estate market when they're slightly
more homes available than buyers
Business cycles - Answers-General swings in business, resulting in an expanded and
contracting activity during different phases of the cycle
Conditional - Answers-A land use the does not comply with the general zoning rules for
the zoning which is located, but is permitted because it benefits the public. This is also
called a special exception
Covenant - Answers-1. A Contract
2. A promise.
3. A Guarantee
4. A restrictive covenant
Seen in a document such as a deed or a lease.
