Explain the steps in the appraisal process

Question 1

The key to an accurate appraisal lies in the methodical collection and analysis of ___

Answer 1

data

Question 2

The ___ is an orderly set of procedures used to collect and analyze data to arrive at an ultimate value conclusion

Answer 2

Appraisal process

Question 3

What are the 2 basic classes that data is divided into during the appraisal process?

Answer 3

1) General data
2) Specific data

Question 4

___ data covers the nation, region, city, and neighborhood.

Answer 4

General

Question 5

___ data covers details of the subject property as well as comparative data relating to costs, sales, and income and expenses of similar properties and competitive with the subject property

Answer 5

Specific

Question 6

What are the 7 steps in the appraisal process?

Answer 6

1) identify the subject property
2) determine the scope of work
3) gather, record, and verify the necessary data
4) determine highest and best use
5) form opinion of value by each of the three approaches
6) reconcile values for final opinion of value
7) report final opinion of value

Question 7

The appraisal report should state the ___ and ___ of value and cite the ___ of it.

Answer 7

type and definition
cite the source

Question 8

The appraisal report should state the ___ and intended ___ for the appraisal

Answer 8

purpose
intended use

Question 9

The appraisal report should state the effective date of the ___ and the date of the ___

Answer 9

opinions of value
report

Question 10

The appraisal report should state the extent of ___

Answer 10

scope of work

Question 11

The extent of the process of collecting, confirming, and reporting the data

Answer 11

Scope of work

Question 12

The appraisal report should list all ___ and ___ that affect the analysis, opinion, and conclusions of value

Answer 12

assumptions
limiting conditions

Question 13

The appraisal report should describe the ___, the appraisal ___ followed, and the ___ that supports the report’s conclusions

Answer 13

information considered
procedures
reasoning

Question 14

If an appraisal approach was excluded, the appraisal report should…

Answer 14

explain why it was excluded

Question 15

The appraisal report should summarize the ___ used to develop the appraisal

Answer 15

scope of work

Question 16

The appraisal report should state the ___ of the real estate existing as of the date of value and the ___ of the real estate reflected in the appraisal

Answer 16

use
use

Question 17

The appraisal report should state the use of the real estate existing ___ and the use of the real estate ___.

Answer 17

as of the date of value
reflected in the appraisal

Question 18

The appraisal report should describe the appraiser’s opinion of the ___ of the real estate

Answer 18

highest and best use

Question 19

The appraisal report should state all extraordinary ___ and hypothetical ___

Answer 19

Extraordinary assumptions
Hypothetical conditions

Question 20

The appraisal report should state that their use might have ___

Answer 20

affected the assignment results

Question 21

The appraisal report should include signed ___ as required by the USPAP

Answer 21

certification

Question 22

The ___ Appraisal Report is the form required by many government agencies

Answer 22

Uniform Residential Appraisal Report

Question 23

The appraiser develops a supportable and objective report called an appraisal report that ___ indicated by the market

Answer 23

Verifies the value

Question 24

Most appraisals are ordered by ___.

Answer 24

Lenders

Question 25

Lenders base ___ on the appraisal value

Answer 25

loans

Question 26

The appraiser must be able to back up the report with ___

Answer 26

Quantifiable conclusions

Question 27

Appraisal methods are defined by the ___.

Answer 27

Uniform Standards of Appraisal Practice (USPAP)

Question 28

Appraisers must be state-licensed or certified for an appraisal performed as part of a(n) ___ related transaction

Answer 28

Federally

Question 29

Real estate licensees also complie data, such as a(n) ___, which is a report of market statistics that assists consumers in the listing and buying process.

Answer 29

Comparative market analysis (CMA)

Question 30

A CMA is NOT a(n) ___.

Answer 30

Appraisal

Question 31

A broker’s price opinion (BPO) may be used in a(n) ___ transaction

Answer 31

NON-federally related

Question 32

A(n) ___ may be used in non-federally related transactions such as home equity lines, refinancing, portfolio management loss mitigation, and collections

Answer 32

Broker’s price opinion (BPO)

Question 33

___ is created by demand, utility, scarcity, and transferability of a property (DUST)

Answer 33

Value

Question 34

___ is the most probable price that property should bring in a fair sale, but it is not necessarily the same as price paid or cost to construct.

Answer 34

Market value

Question 35

A sales comparison approach makes use of properties comparable (comps) to the subject property by ___ the value of a feature present in the subject, but absent from the comp

Answer 35

Adding

Question 36

A sales comparison approach makes use of properties comparable (comps) to the subject property by ___ the value of a feature present in the comp, but absent from the subject

Answer 36

Subtracting

Question 37

The cost approach estimates current reproduction or replacement cost of constructing building and other property improvements using which 4 methods?

Answer 37

Square foot
Unit in place
Quantity survey
Index

Question 38

The cost approach estimates accrued depreciation using the ___ method

Answer 38

Straight line

Question 39

The ___ approach is based on present value of the right to future income

Answer 39

Income

Question 40

The ___ may be used to estimate the value of a single-family residential rental property

Answer 40

Gross rent multiplier

Question 41

The ___ nay be used to estimate income for larger residential and commercial properties

Answer 41

Gross Income multiplier

Question 42

In IL, the ___ requires mandatory licensure with limited exceptions for IL appraisers

Answer 42

Real Estate Appraiser Licensing Act

Question 43

In IL, only ___ may be certified as appraisers or act as associate real estate trainee appraisers

Answer 43

Individuals

Question 44

In IL, corporations, partnerships, firms, and groups may NOT be…

Answer 44

certified as appraisers