Appraisals Chapter 7: Property Inspection
and Analysis UPDATED ACTUAL Exam
Questions and CORRECT Answers
Inspection Checklist - CORRECT ANSWER - Or appraisal form. Needed to record data in
an organized manner. Could use standardized inspection form, URAR appraisal forms, tablet, or
smartphone
URAR - CORRECT ANSWER - Uniform Residential Appraisal Report
Information to collect - CORRECT ANSWER - Info that meets reporting requirements
Things you believe the buyer might consider
Information that your peers might consider to be relevant
Most common use for an appraisal report - CORRECT ANSWER - Home Loan
Dwellings should conform to: - CORRECT ANSWER - -Safe, secure, healthful, attractive
-Ease of circulation and housekeeping
-Visual and auditory privacy
-Appropriate light and ventilation
-Fire and accident protection
- Economy of maintenance
- Adequate sanitation facilities
-Accessory services
Value Definition - CORRECT ANSWER - Highest and best use. If highest and best use is
different from current conditions, building inspection should explore alternatives. Acceptability
of property by local standards
, Special Conditions - CORRECT ANSWER - Presence or absence of any special
conditions may influence the detail required in a building inspection. Ex. appraisal subject to the
completion of remodeling that is in progress, info in advance and kept in mind
3 Value Approaches - CORRECT ANSWER - -Cost Approach
-Sales Comparison Approach
-Income Approach
Cost Approach - CORRECT ANSWER - Most descriptive detail. Rely on use of published
cost manuals.
Sales Comparison Approach - CORRECT ANSWER - Compare to similar properties that
have sold
Income Approach - CORRECT ANSWER - Be aware of characteristics that have the
greatest effect on income potential and the probable expenses.
Purpose of building inspection - CORRECT ANSWER - To identify the condition, quality,
features, and functionality of the property being appraised to the degree practical.
What to inspect - CORRECT ANSWER - Depends on if interior or exterior. Anything
accessible inside.
Mezzanines - CORRECT ANSWER - Usually inspected. Type and quality of finish and
ceiling heights can be different than rest of building.
Attics - CORRECT ANSWER - Variable. If larger or finished, fuller inspection. Note
degree of finish
and Analysis UPDATED ACTUAL Exam
Questions and CORRECT Answers
Inspection Checklist - CORRECT ANSWER - Or appraisal form. Needed to record data in
an organized manner. Could use standardized inspection form, URAR appraisal forms, tablet, or
smartphone
URAR - CORRECT ANSWER - Uniform Residential Appraisal Report
Information to collect - CORRECT ANSWER - Info that meets reporting requirements
Things you believe the buyer might consider
Information that your peers might consider to be relevant
Most common use for an appraisal report - CORRECT ANSWER - Home Loan
Dwellings should conform to: - CORRECT ANSWER - -Safe, secure, healthful, attractive
-Ease of circulation and housekeeping
-Visual and auditory privacy
-Appropriate light and ventilation
-Fire and accident protection
- Economy of maintenance
- Adequate sanitation facilities
-Accessory services
Value Definition - CORRECT ANSWER - Highest and best use. If highest and best use is
different from current conditions, building inspection should explore alternatives. Acceptability
of property by local standards
, Special Conditions - CORRECT ANSWER - Presence or absence of any special
conditions may influence the detail required in a building inspection. Ex. appraisal subject to the
completion of remodeling that is in progress, info in advance and kept in mind
3 Value Approaches - CORRECT ANSWER - -Cost Approach
-Sales Comparison Approach
-Income Approach
Cost Approach - CORRECT ANSWER - Most descriptive detail. Rely on use of published
cost manuals.
Sales Comparison Approach - CORRECT ANSWER - Compare to similar properties that
have sold
Income Approach - CORRECT ANSWER - Be aware of characteristics that have the
greatest effect on income potential and the probable expenses.
Purpose of building inspection - CORRECT ANSWER - To identify the condition, quality,
features, and functionality of the property being appraised to the degree practical.
What to inspect - CORRECT ANSWER - Depends on if interior or exterior. Anything
accessible inside.
Mezzanines - CORRECT ANSWER - Usually inspected. Type and quality of finish and
ceiling heights can be different than rest of building.
Attics - CORRECT ANSWER - Variable. If larger or finished, fuller inspection. Note
degree of finish
