Ch 11 Quiz Flashcards
True or False: Good appraisal practice dictates brief boilerplate statements in the reconciliation section of an appraisal report.
FALSE
An appraiser discovers that the indicated values of her comparable sales, after adjustment, have a range of over 20%. What should the appraiser do?
leave the indications as they are and explain it
In reconciliation, an appraiser needs to address both the ________ and the _________ of the data.
quality, quantity
An appraiser has developed three approaches to value in an appraisal assignment, and is now trying to determine what the final value opinion will be. Which step in the appraisal process is being undertaken here?
Reconciliation
Which of these is a reason why appraisers typically use at least three comparable sales in the sales comparison approach?
if one sale is a bad indicator, it will show up in contrast with the other sales
Under USPAP, an appraisal may be expressed numerically as
a range of numbers, a specific amount, a relationship to a benchmark
When reconciling the sales comparison approach, an appraiser should pay closer attention to
adjustments made in the upper part of the grid
When reconciling to a value conclusion, USPAP requires an appraiser to consider:
The quality of the data available, The applicability and relevance of the approaches used, The quantity of the data available
True or False: Reconciliation involves taking the indicated values of the comparable sales and averaging them.
FALSE
The process of reconciliation
occurs in several places throughout the appraisal process
“A phase of a valuation assignment in which two or more value indications are processed into a value opinion, which may be a range of value, a single point estimate, or a reference to a benchmark value “ is the definition of
reconciliation
True or False: The reconciliation process means simply proofreading the report for typos and math errors.
FALSE
Which of these is a conclusion in an appraisal report that may require an appraiser to employ a reconciliation process?
GRM, site value, market rent
A well-written reconciliation statement in an appraisal report is like an attorney’s
summation to the jury
True or False: USPAP requires appraisers to be perfect when providing appraisal services.
FALSE
Which of these is the LEAST appropriately rounded final value opinion?
405200
True or False: The indicated values in the sales comparison approach should ideally be within 10% of each other.
FALSE
Which of these sales comparison approach reconciliation statements is LEAST acceptable?
All comps were considered in arriving at a value conclusion.
Which of these is an appropriate way to express a value conclusion in an appraisal report?
“$220,000”, “Between $200,000 and $220,000”, “Not less than $200,000”
One of the weaknesses of spell
it will not catch misused words
Which of these final value conclusions is MOST appropriately rounded?
$44,500
True or False: A lengthy appraisal report is always more credible than a shorter one.
FALSE
If an appraiser uses three comparable sales in the sales comparison approach
statistical analysis will be of little use
USPAP says that an appraiser must correctly complete research and analyses necessary to produce a ________ appraisal.
credible
