Chapter 19 Reconciliation Flashcards
The items in the upper part of the grid are more subjective, intangible and harder to quantify. For example:
Sale or financing concessions Date of sale/time Location View Design/style Quality Condition
Think about this reconciliation process and then talk about it in the section of the URAR that says “Summary of Sales Comparison Approach.”
Be persuasive
Be succinct
Be positive
Be direct
the criteria that enable an appraiser to form a meaningful, defensible conclusion about the final value opinion. Value indications are tested for the appropriateness of the approaches and adjustments applied, the accuracy of the data, and the quantity of evidence analyzed
reconciliation criteria
The final reconciliation process consists of various items:
Review Appropriateness Consistency Accuracy Relevance Quality of data Quantity of data
Standards Rule 1-1(c) of USPAP says an appraiser must “not render appraisal services in \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ manner...” An illegal A careless or negligent An inappropriate Unsupported
a careless or negligent
All of these topics should be part of your reconciliation process, except for Chain of title Appropriateness Consistency Accuracy
chain of title
When analyzing comparable sales, pay more attention to adjustments made in the _____________ of the sales grid.
Lower part - Physical characteristics
Upper part - Transactional elements
Basement section
Heating/Cooling and Energy Efficient items Section
upper part - transactional elements
The reconciliation is like a lawyer’s \_\_\_\_\_\_\_\_\_\_ to the jury. Plea Summation Appeal Opening Statement
summation
STANDARD 1 of USPAP states: "In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analysis necessary to produce \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_." A Certified appraisal An appropriate result Credible results A credible appraisal
a credible appraisal
When we do a reconciliation of the Sales Comparison Approach, what is the proper procedure?
Let the data fall wherever it does.
Make sure the adjusted values are all the same.
Keep the adjusted values within 5% of each other.
Average the results.
let the data fall wherever it does
The most common definition of Market Value defines it as "the \_\_\_\_\_\_\_\_\_\_ price that a property \_\_\_\_\_\_\_\_\_\_ bring..." Average, should Highest, will Most probable, should Typical, will
most probable, should
"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 Remediation Sales Analysis Intermediation Reconciliation
reconciliation
STANDARD 1 of USPAP states: "In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analysis necessary to produce \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_." A Certified appraisal An appropriate result Credible results A credible appraisal
a credible appraisal
Which of these is not a reason why we should expect differences in the adjusted sales process of comparable sales?
The real estate market is imperfect.
We cannot always have access to 100% of the information we need.
All of these are possible reasons.
It is rare to find perfectly informed buyers and sellers, acting unemotionally.
all of these are possible reasons
In the sales comparison reconciliation, how many sales should we have before we consider using a statistical analysis? 3 4 Any number is fine 6 or more
6 or more
