Basic Appraisal Procedures Mckissock Exam
Questions and Answers 100% Pass
Valuation Process - ✔✔Systematic set of procedures an appraiser follows to provide
answers to a clients questions about real property value
Appraisal Process - ✔✔1. Define Problem
2. Determine scope of work
3. Gather Record & verify dat
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 - ✔✔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
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,identification and location of the real estate - ✔✔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 - ✔✔Identify the characteristics of the property that are
relevant to the type and definition of value and intended use of the appraisal
market value - ✔✔stated as an opinion that presumes the transfer of a property as of a
certain date under specific conditions
Appraisers are cautioned to - ✔✔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 - ✔✔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 equ. to cahs; other terms; if not market value must be clearly
identified
purpose of the assignment - ✔✔objective of assignment. ex: to develop an opinion of the
defined value of a specified interest in real estate
intended user - ✔✔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 - ✔✔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 - ✔✔identify the effective date of the appraisers opinions and
conclusions
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, extraordinary assumption - ✔✔an assignment specific assumption as of the effective
date if which found to be false could alter the appraisers opinions or conclusions
hypothetical edition - ✔✔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 - ✔✔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
determine scope of work - ✔✔the type and extent of research and analysis or appraisal
review assignment
advisory opinion-22 - ✔✔understanding whihc analysis methods and techniques are
necessary and what data are necessary to correctly complete the analysis is an integral
part of the scope of work decision
standards rule 1-2h of USPAP - ✔✔determine the scope of work necessary to produce
credible results in accordance with the SCOPE OF WORK RULE
scope of work rule - ✔✔identify problem; determine and perform the scope of work
necessary to develop credible assignment results; disclose scope of work in the report
scope of work includes but is not limited to: - ✔✔the extent to which the property is
identified;
the extent to which tangible property is inspected;
the type and extent of data researched; and
the type and extent of analyses applied to arrive at opinions or conclusions.
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Questions and Answers 100% Pass
Valuation Process - ✔✔Systematic set of procedures an appraiser follows to provide
answers to a clients questions about real property value
Appraisal Process - ✔✔1. Define Problem
2. Determine scope of work
3. Gather Record & verify dat
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 - ✔✔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
100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 1
,identification and location of the real estate - ✔✔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 - ✔✔Identify the characteristics of the property that are
relevant to the type and definition of value and intended use of the appraisal
market value - ✔✔stated as an opinion that presumes the transfer of a property as of a
certain date under specific conditions
Appraisers are cautioned to - ✔✔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 - ✔✔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 equ. to cahs; other terms; if not market value must be clearly
identified
purpose of the assignment - ✔✔objective of assignment. ex: to develop an opinion of the
defined value of a specified interest in real estate
intended user - ✔✔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 - ✔✔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 - ✔✔identify the effective date of the appraisers opinions and
conclusions
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, extraordinary assumption - ✔✔an assignment specific assumption as of the effective
date if which found to be false could alter the appraisers opinions or conclusions
hypothetical edition - ✔✔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 - ✔✔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
determine scope of work - ✔✔the type and extent of research and analysis or appraisal
review assignment
advisory opinion-22 - ✔✔understanding whihc analysis methods and techniques are
necessary and what data are necessary to correctly complete the analysis is an integral
part of the scope of work decision
standards rule 1-2h of USPAP - ✔✔determine the scope of work necessary to produce
credible results in accordance with the SCOPE OF WORK RULE
scope of work rule - ✔✔identify problem; determine and perform the scope of work
necessary to develop credible assignment results; disclose scope of work in the report
scope of work includes but is not limited to: - ✔✔the extent to which the property is
identified;
the extent to which tangible property is inspected;
the type and extent of data researched; and
the type and extent of analyses applied to arrive at opinions or conclusions.
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