Ch 11 Quiz

Question 1

True or False: Good appraisal practice dictates brief boilerplate statements in the reconciliation section of an appraisal report.

Answer 1

FALSE

Question 2

An appraiser discovers that the indicated values of her comparable sales, after adjustment, have a range of over 20%. What should the appraiser do?

Answer 2

leave the indications as they are and explain it

Question 3

In reconciliation, an appraiser needs to address both the ________ and the _________ of the data.

Answer 3

quality, quantity

Question 4

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?

Answer 4

Reconciliation

Question 5

Which of these is a reason why appraisers typically use at least three comparable sales in the sales comparison approach?

Answer 5

if one sale is a bad indicator, it will show up in contrast with the other sales

Question 6

Under USPAP, an appraisal may be expressed numerically as

Answer 6

a range of numbers, a specific amount, a relationship to a benchmark

Question 7

When reconciling the sales comparison approach, an appraiser should pay closer attention to

Answer 7

adjustments made in the upper part of the grid

Question 8

When reconciling to a value conclusion, USPAP requires an appraiser to consider:

Answer 8

The quality of the data available, The applicability and relevance of the approaches used, The quantity of the data available

Question 9

True or False: Reconciliation involves taking the indicated values of the comparable sales and averaging them.

Answer 9

FALSE

Question 10

The process of reconciliation

Answer 10

occurs in several places throughout the appraisal process

Question 11

“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

Answer 11

reconciliation

Question 12

True or False: The reconciliation process means simply proofreading the report for typos and math errors.

Answer 12

FALSE

Question 13

Which of these is a conclusion in an appraisal report that may require an appraiser to employ a reconciliation process?

Answer 13

GRM, site value, market rent

Question 14

A well­-written reconciliation statement in an appraisal report is like an attorney’s

Answer 14

summation to the jury

Question 15

True or False: USPAP requires appraisers to be perfect when providing appraisal services.

Answer 15

FALSE

Question 16

Which of these is the LEAST appropriately rounded final value opinion?

Answer 16

405200

Question 17

True or False: The indicated values in the sales comparison approach should ideally be within 10% of each other.

Answer 17

FALSE

Question 18

Which of these sales comparison approach reconciliation statements is LEAST acceptable?

Answer 18

All comps were considered in arriving at a value conclusion.

Question 19

Which of these is an appropriate way to express a value conclusion in an appraisal report?

Answer 19

“$220,000”, “Between $200,000 and $220,000”, “Not less than $200,000”

Question 20

One of the weaknesses of spell

Answer 20

it will not catch misused words

Question 21

Which of these final value conclusions is MOST appropriately rounded?

Answer 21

$44,500

Question 22

True or False: A lengthy appraisal report is always more credible than a shorter one.

Answer 22

FALSE

Question 23

If an appraiser uses three comparable sales in the sales comparison approach

Answer 23

statistical analysis will be of little use

Question 24

USPAP says that an appraiser must correctly complete research and analyses necessary to produce a ________ appraisal.

Answer 24

credible