Ch 1 Quiz Flashcards
Who is responsible for identifying the intended use of an appraisal?
the appraiser
Each appraisal report must contain two dates, the ____________ and the ______________.
effective date of the appraisal, date of the report
The objective for an assignment is its
purpose
The intended user of an appraisal is the ________ and any other user, as identified by _________.
client
name or type.
The intended user is the client (and any other named) user). They can be identified by name or by type (such as a secondary market participant or a court of law).
An appraiser observes that an underground tank is leaking. An appraisal could be done of the property in its “as is” contaminated condition or could be appraised under the _______________ that the property is free of contamination.
hypothetical condition
What is the last step in the valuation process?
Report the final opinion of value
The SCOPE OF WORK RULE says that “the appraiser must be prepared to demonstrate that the scope of work is sufficient to produce _________________”
credible assignments results
Scope of work applies to
Both appraisals and appraisal review assignments
An appraiser must be prepared to demonstrate that the scope of work is sufficient to produce
credible assignments results
The valuation process is a systematic procedure employed to provide the answer to a(n) ________ question about the value of __________.
client’s, real property
True or False: A workfile must be in existence prior to the issuance of a written or oral report.
TRUE
True or False: All three approaches to value must be used in every real property appraisal.
FALSE
What is the final step in the valuation process?
report the final opinion of value
A step-by-step procedure that can be applied to any type of appraisal assignment is
the valuation process
An appraisal report must contain sufficient information to allow ________ to understand the scope of work.
intended users
An appraiser encounters a small crack in a foundation slab on a house he is appraising. He discloses the crack in the appraisal report and states that he is not a structural engineer and assumes the crack is not structural in nature and does not require a repair. This is an example of the use of a(n) ______________.
Extraordinary assumption. There is no known problem, but the appraiser is protecting him or her self in case there really is a problem.
True or False: HUD/FHA requires an appraiser to verify all comparable sales data used in an appraisal.
TRUE
Which is NOT an appropriate source for a legal description?
postal address
Which appraisal term is defined as: “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”?
Hypothetical condition
An appraiser encounters an underground storage tank. If there is no evidence of any observable leaks, the appraiser could indicate a value opinion based on the ______________ that the tank is indeed not leaking.
extraordinary assumption
True or False: An appraiser’s client must always directly engage the appraiser.
FALSE
The effective date of value can be
a present, past, or future date
“An assignment-specific assumption, as of the effective date, which, if found to be false, could alter the appraiser’s opinions or conclusions” is the definition of
extraordinary assumption.
What is the first step in the valuation process?
define the problem
(Der Super Vater hold land (und) 3 Rustige Russen)
The party or parties who engage, by employment or contract, an appraiser in a specific assignment is the
client
“Documentation necessary to support an appraiser’s analyses, opinions, and conclusions” is the appraiser’s
workfile
Which would NOT be a sub-step in defining the problem?
highest and best use
What appraisal term is defined as “The type of data and the extent of research and analyses”?
scope of work
An appraiser must comply with the SCOPE OF WORK RULE when completing:
an appraisal assignment
In highest and best use analysis, which criterion is applied LAST?
maximally productive. Generally speaking, the criterion “legally permissible” is applied first, and “maximally productive” is applied last.
True or False: Real property appraisal reports may be written or oral.
TRUE
Where would an appraiser keep the documentation that supports her appraised value?
Workfile
An appraiser produces an appraisal report that includes the effective date of the value. What other date does the appraiser need to include in the appraisal report?
Date of report
True or False: The effective date of the valuation must be the date on which the appraiser inspected the subject property.
FALSE. In many cases, the effective date is the date the appraiser inspects the subject property. But that is not always the case. The effective date can be any date, whether past, present, or future.
“An interest or interests in real estate” is the definition of
real property
An appraiser is valuing a property under a condition that is known by the appraiser to be false. The appraiser is employing a(n) ____________ in this appraisal.
hypothetical condition
True or False: There is one universal definition of market value used in real property appraisal.
FALSE
“The type and extent of research and analyses in an appraisal or appraisal review assignment” is the definition of
scope of work
