Chapter 3 - Definitions Flashcards
An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed.
False
A preference or inclination that precludes an appraiser’s impartiality, independence, or objectivity is:
Bias
If an appraiser assumes a condition to be true, and evidence supports that belief, although that fact is not certain, this is an example of:
An extraordinary assumption
If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of:
A hypothetical condition
“The monetary relationship between properties and those who buy, sell or use those properties” is the definition of:
Value
An appraiser receives a copy of a signed sales agreement for an office building, which specifies the agreed-upon amount of $950,000. What does this figure represent?
Price
By using a published cost manual, an appraiser determines that the construction cost of a 2,500 square foot dwelling is $400,000. This figure represents the dwelling’s:
Cost
According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the:
Client
An appraiser performs an appraisal assignment and develops an opinion of value. This value opinion is
Assignment Result
It is permissible for an appraiser to be engaged in an assignment by an agent, who is acting on behalf of the client.
True
An intended user is:
A party who is identified by the appraiser based on communication with the client at the time of the assignment
Who is responsible for making the identification of the intended use in an assignment?
The appraiser
A real estate broker completes a Comparative Market Analysis (CMA) on a property that she wants to list for sale. What would this be considered?
A valuation service
Which is the broader category of services?
valuation services
A workfile must be maintained for:
Appraisal and appraisal review assignments only
