MCKISSOCK USPAP CHAPTER 7
TRAINING COURSES QUESTIONS
AND ANSWERS
Standard Rule 1-4 (c) - Answer-(i) analyze such comparable rental data as are available
and/or the potential earnings capacity of the property to estimate the gross income
potential of the property;
(ii) analyze such comparable operating expense data as are available to estimate the
operating expenses of the property;
(iii) analyze such comparable data as are available to estimate rates of capitalization
and/or rates of discount; and
(iv) base projections of future rent and/or income potential and expenses on reasonably
clear and appropriate evidence
Standard Rule 1-4 (D) - Answer-When developing an opinion of the value of a leased
fee estate or a leasehold estate, an appraiser must analyze the effect on value, if any,
of the terms and conditions of the lease(s).
Standard Rule 1-4 (e) - Answer-When analyzing the assemblage of the various estates
or component parts of a property, an appraiser must analyze the effect on value, if any,
of the assemblage. An appraiser must refrain from valuing the whole solely by adding
together the individual values of the various estates or component parts.
Standard Rule 1-4 (f) - Answer-When analyzing anticipated public or private
improvements, located on or off the site, an appraiser must analyze the effect on value,
if any, of such anticipated improvements to the extent they are reflected in market
actions.
Standard Rule 1-4 (g) - Answer-When personal property, trade fixtures, or intangible
items are included in the appraisal, the appraiser must analyze the effect on value of
such non-real property items.
What requirements are included in Standard 1? - Answer-Requirements that are
specific to the development of real property appraisal assignments are found in
Standard 1
TRAINING COURSES QUESTIONS
AND ANSWERS
Standard Rule 1-4 (c) - Answer-(i) analyze such comparable rental data as are available
and/or the potential earnings capacity of the property to estimate the gross income
potential of the property;
(ii) analyze such comparable operating expense data as are available to estimate the
operating expenses of the property;
(iii) analyze such comparable data as are available to estimate rates of capitalization
and/or rates of discount; and
(iv) base projections of future rent and/or income potential and expenses on reasonably
clear and appropriate evidence
Standard Rule 1-4 (D) - Answer-When developing an opinion of the value of a leased
fee estate or a leasehold estate, an appraiser must analyze the effect on value, if any,
of the terms and conditions of the lease(s).
Standard Rule 1-4 (e) - Answer-When analyzing the assemblage of the various estates
or component parts of a property, an appraiser must analyze the effect on value, if any,
of the assemblage. An appraiser must refrain from valuing the whole solely by adding
together the individual values of the various estates or component parts.
Standard Rule 1-4 (f) - Answer-When analyzing anticipated public or private
improvements, located on or off the site, an appraiser must analyze the effect on value,
if any, of such anticipated improvements to the extent they are reflected in market
actions.
Standard Rule 1-4 (g) - Answer-When personal property, trade fixtures, or intangible
items are included in the appraisal, the appraiser must analyze the effect on value of
such non-real property items.
What requirements are included in Standard 1? - Answer-Requirements that are
specific to the development of real property appraisal assignments are found in
Standard 1
