Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Residential Report Writing and Case Studies > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

The act or process of developing an opinion of value

of or pertaining to appraising
and related functions
such as appraisal practice or appraisal services

A

Appraisal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Any communication, written or oral,
of an appraisal or appraisal review
that is transmitted to the client or a party authorized by the client
upon completion of an assignment

A

Report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

An appraisal in an ____________process.

A

intellectual process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The appraisal report is the ________ of the appraisal, or value opnion.

A

communication

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

These two terms are not synonymous; an appraisal is not a report, and a report is not an appraisal.

A

:)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does USPAP standard 1 cover?

A

real property appraisal development

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does USPAP standard 2 cover?

A

real property appraisal reporting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Essentially, the report is the appraiser’s sole means of

A

communicating the critical aspects of the appraisal process to the client and other intended users

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is defined as the act or process of developing an opinion of value?

A

Appraisal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Kristin develops an opinion of value, prepares it in a written format, and mails it to her client. What has she mailed to the client?

A

A report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What USPAP standard states:

In developing a real property appraisal, an appraiser must identify:
1. the problem to be solved
2. determine the scope of work necessary to solve the problem
3. correctly complete research and analysis necessary to produce a credible appraisal.

A

USPAP standard 1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the key word in USPAP standard 1

A

Credible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Definition of credible.

A

worthy of belief

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does USPAP standard 2 to state?

A

An appraiser must:
1. communicate each analysis, opinion, and conclusion
-in a manner that is not misleading.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the key phrase in USPAP standard 2?

A

misleading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The Ethics Rule is USPAP in includes this statement:

A

An appraiser:

-must not communicate assignment results with the intent to mislead or defraud

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Definition of misleading?

A

-Intentionally or unintentionally misrepresenting
-misstating
-or concealing relevant facts or conclusions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Intended to deceive

A

Fraudulent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is the difference between misleading and fraudulent?

A

Intent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The definition of _____________says it may be intentional or unintentional. A report may be misleading by accident. However, in order for an appraisal report to be _____________, the appraiser must have intended to deceive.

A

misleading, fraudulent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How many steps are in the appraisal process?

A

7

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the steps in the appraisal process?

A
  1. Identification of the problem.
  2. Determine the scope of work.
  3. Collection and analyze the data
  4. Determine highest and best use
  5. Application of the approaches to value.
  6. Reconciliation
  7. Reporting of the appraisal.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

At the time of engagement, what questions should be asked for the problem identification process?

A
  1. Who is the client?
  2. Are there any other intended users?
  3. What is the purpose of this appraisal assignment?
  4. What is the intended use of our opinions, analyses, and conclusions?
  5. What is the effective date for this assignment?
  6. What type of value is required for this assignment?
  7. What are the relevant characteristics concerning this property?
  8. Are there any conditions for this assignment that must be complied with?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

In a residential mortgage lending appraisal, is the client the loan processor, loan officer or the AMC that ordered the appraisal on behalf of the financial institution?

A

The financial institution would generally be the client in this scenario.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The party or parties who engage an appraiser by employment or contract in a specific assignment, whether directly or through an agent.

A

CLIENT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

When you determine who your client is, you will also need to ask what second question?

A

Are there any other intended users that will use this report?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The date to which an appraiser’s analyses, opinions, and conclusions apply; also referred to as date of value.

A

Effective Date

28
Q

Often, but not always, the effective date is the same as_________________

A

the date the subject property is inspected.

29
Q

If the assignment is for a future effective date, the value would be _______ in nature.

A

prospective

30
Q

What type of value is required for this appraisal? This question refers to??

A

the definition of value.

ie, market value, insured value, book value, leased fee value

31
Q

Determination of the appropriate scope of work was in the past referred to as ________________

A

preliminary survey

32
Q

To determine the scope of work the appraiser must:

A
  1. Rely on info from step 1, proper identification of the problem
  2. Ensure you are competent and have the knowledge and experience to do the assignment.
  3. Determine the client’s expectations for the assignment.
  4. Not allow the assignment conditions to limit your ability to arrive at a credible opinion of value
  5. Be able to support the decision for the level of work to be accomplished.
  6. Be prepared to defend the research and analysis that you decided was not needed for this assignment.
33
Q

Deep in mind, the scope of work is the ________ stage of the appraisal assignment.

A

planning

34
Q

Most mortgage lending appraisal assignments require an opinion of ________value.

A

market

35
Q

The first two steps in the appraisal process are in the planning phase, the next_______steps involve the _______ of the appraisal.

A

4, planning

1-2 planning
3-6 development (execution phase)

36
Q

The planning phase is also called the _______ phase.

A

Judgement phase

37
Q

Usually an inspection of the property is made as part of this step?

A

Step 3

Collection and analysis of the data

38
Q

____________ data about the community, market area and neighborhood will relate the

-social issues
-economic issues,
-political issues
-environmental issues

which may have an effect on the subject
s property value

A

General data

39
Q

__________ data will relate to the subject property and the comparable sales in the subject market area.

A

Specific data

40
Q

When appraising a property for market value, the property is always valued on the bases of_________________

A

its highest and best use.

***However, when appraising for a type of value other than market value, highest and best use analysis may not be necessary for credible results.

41
Q

What are the four tests (criteria) for highest and best use?

A

-physically possible
-legally permissible
-financially feasible
maximally productive (produces the highest value)

42
Q

This approach to value is based primarily on the principles of contribution and substitution.

A

Sales comparison approach.

43
Q

The cost approach is also known as the _________to value.

A

summation approach

44
Q

3 common cost approach methods

A
  1. comparative unit method
  2. Unit in place method
  3. quantity survey method
45
Q

The comparative unit method of cost approach is also known as the

A

square foot method

46
Q

External obsolescence is always said to be __________in nature.

A

incurable.

47
Q

Age-life method of depreciation uses the effective and ________of the improvement to estimate depreciation.

A

total economic life

48
Q

Highest and best use analysis is mandatory in all real property appraisal assignments.

True/False

A

False

49
Q

The principle of anticipation is at work with this approach to value. In other words, the value of property is based upon the present value of future benefits of property ownership.

A

Income approach

50
Q

Income Approach

For non-residential properties, a capitalization methodology is employed using a market-derived income stream and the ______Formula to arrive at an indicated value by the income approach.

A

IRV

Income/Rate = value

51
Q

Income Approach

For valuing small residential properties by the income approach, a gross rent multiplier (GRM) analysis is often used, employing the ______ forumal.

A

VIM formula
Value = Income x Multiplier

52
Q

_________ is the final step in the DEVELOPMENT of the appraiser’s value opinion.

A

Reconciliation.

(Reporting is the final step in the OVERALL appraisal process)

53
Q

The final step in the OVERALL appraisal process is _________.

A

Reporting the appraisal.

54
Q

If the appraisal is intended for use in a federally related transaction, it must be presented

A

in a written report.

( an electronically-transmitted report is considered to be a written report.)

55
Q

For a real estate-related financial transaction to qualify as a federally related transaction, the transaction value (sales price or mortgage amount) must be greater than $__________ and serviced by___________________

A

$400,000.00

Federally regulated financial institution.

56
Q

The federal regulators include the

A
  1. FDIC federal deposit insurance corporation
  2. OCC Office of Comptroller of the Currency
  3. FRB Federal Reserve Board
  4. NCUA National Credit Union Administration
57
Q

The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010, eliminated ________ as a federal financial institution regulatory agency.

A

OTS
Office of Thrift Supervision

58
Q

Written appraisal reports must contain sufficient information so that ________ can properly understand them.

  • The borrower
  • Any Reader
  • Only the client
  • Intended Users
A
  • Intended Users
59
Q

Earl is appraising a parcel of real property for a mortgage loan. What is the best source to obtain the information he needs for problem identification?

A

The client

60
Q

What may happen if the client provides the appraiser with incorrect or incomplete property information?

A

A non-credible value opinion may result.

61
Q

James is preparing an appraisal repoert for a federally-regulated mortgage lender, as part of a federally-related transaction. His report must be:

A

A written report

62
Q

Standard ____ covers real property appraisal development, and Standard _____ covers real property appraisal reporting.

A

1,2

63
Q

For today’s residential real property appraiser, the appraisal development and reporting process:

A

Sometimes seem to overlap due to reliance of form software

64
Q

The appraisal development process:

A

Is an intellectual process

65
Q

“Intended to deceive” is the definition of:

A

Fraudulent

Residential Report Writing and Case Studies (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions