Ch 1

Question 1

A systematic set of procedures an appraiser follows to provide answers to a client’s questions about real property value. Defines:

Answer 1

Valuation Process

Question 2

The Valuation Process is a x that can be applied to any type of x.
It makes a logical progression and, if followed, ensures that the appraiser does not overlook any important steps along the way. It can also serve as a x.

Answer 2

step by step procedure
appraisal assignment
checklist

Question 3

The steps in the valuation process (sometimes also called the x) are:

Answer 3

appraisal process

1. Define the problem
2. Determine scope of work
3. Gather, record, and verify the data
4. Determine the highest and best use
5. Estimate the land value
6. Estimate value by each of the three approaches (if applicable)
7. Reconcile the estimated values into the final opinion of value
8. Report the final opinion of value

(Der Super Vater holt Land (&) 3 Rüstige Russen)

Question 4

The client may be an xxx, and may engage and communicate with the appraiser directly or x

Answer 4

individual, group, or entity
through an agent (AMC).

Question 5

Various sub-steps in defining the Problem:

Answer 5

• 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

Question 6

Postal addresses or assessor’s parcel numbers are not x

Answer 6

legal descriptions.

Question 7

Legal descriptions are

Answer 7

• Metes and Bounds * Rectangular Survey * Lot and Block

Question 8

What are partial estates?

Answer 8

• Life interests
• Easements
• Encroachments

Question 9

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 defines

Answer 9

Intended Use

Question 10

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. defines

Answer 10

Intended User

Question 11

If the intended user is FHA or VA, then the appraisal needs to conform to x

Answer 11

their specific requirements.

Question 12

The effective date of value can be a xxx date.

Answer 12

past (retrospective), current or future (prospective)

Question 13

Two dates are essential to an appraisal report.

Answer 13

The effective date of the appraisal and the date of the report.

Question 14

The effective date could also be at some point in the future. The most common usage of prospective value opinions is for xxx

Answer 14

proposed improvements or development.

Question 15

Typically, if there are no other restraints or client requests for another date, the effective date of value will be the date of xxx

Answer 15

the last inspection of the property.

Question 16

The date of the report is the date xxx

Answer 16

you sign and issue the final report.

Question 17

…an assignment-specific assumption, as of the effective date, which, if found to be false, could alter the appraiser’s opinions or conclusions… defines

Answer 17

Extraordinary Assumption

(storage tank not leaking)

Question 18

“a condition, directly 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…. defines

Answer 18

Hypothetical Condition

(we know the tank is leaking. It is a lie)

Question 19

“the type and extent of research and analyses in an appraisal or appraisal review assignment. “ defines

Answer 19

Scope of Work

Question 20

SCOPE OF WORK RULE

Answer 20

Determine the scope of work necessary to produce credible results

Question 21

For each appraisal or appraisal review assignment, an appraiser must:

Answer 21

1. identify the problem to be solved;
2. determine and perform the scope of work necessary to develop credible assignment results; and
3. disclose the scope of work in the report….

Question 22

In a Restricted Appraisal Report, the scope of work need only be x.

Answer 22

stated

Question 23

An appraiser must prepare a workfile for each appraisal or appraisal review assignment. A workfile must be in existence prior xxx

Answer 23

to the issuance of any report or other communication of assignment results.

Question 24

A xx of an oral report must be added to the workfile within a reasonable time after the issuance of the oral report. “

Answer 24

written summary

Question 25

The workfile must include:

Answer 25

• the name of the client and the identity, by name or type, of any other intended users;
• true copies of all written reports, documented on any type of media (A true copy is a replica of the report transmitted to the client. A photocopy or an electronic copy of the entire report transmitted to the client satisfies the requirement of a true copy.);
• summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser’s signed and dated certification; and
• all other data, information, and documentation necessary to support the appraiser’s opinions and conclusions and to show compliance with USPAP, or references to the location(s) of such other data, information and documentation.

Question 26

How long do you have to keep your workfile?

Answer 26

“An appraiser must retain the workfile for a period of at least five years after preparation or at least two years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period expires last.”

Question 27

“The appraiser must verify sale information with the xxx.
If the sale cannot be verified with someone who has first-hand knowledge of the transaction, use xx. However, the appraiser must clearly state how the sale was verified and to what extent. “

That specifically applies to appraisals, but it may still be appropriate guidance in other types of appraisals as well.

Answer 27

buyer, the seller or one of their representatives (broker, lender, lawyer, etc.).

public records

FHA

Question 28

The listing real estate agent for the subject property meets the appraiser at the property and gives him information on recent comparable sales in the subdivision that did not appear in the local MLS. Can the appraiser use this sales data that came from a party who has a financial interest in the sale of the subject property?

Answer 28

Yes, but only if the appraiser verifies these sales from a disinterested source.

Question 29

The appraiser’s conclusion of highest and best use must meet xx of these criteria. Generally speaking, the criterion xx is applied first, and xx applied last.

Answer 29

all four

legally permissible
maximally productive