Module 1 Flashcards
____________ is a valuation service performed by an individual acting as an appraiser
Appraisal practice
Professional services that come under appraisal practice include
- Appraisal
- appraisal review
- appraisal consulting
- other services while acting as an appraiser
what is an appraisal
An appraisal is “the act or process of developing an opinion of value; an opinion of value
Appraisals are commonly used in the following types of assignments:
- Transfer of ownership
- Financing and credit
- Litigation
- Tax Matters
- Investment decisions
The valuation process is a
systematic procedure employed by an appraiser to provide the answer to the client’s question about the value of the property..
How many steps are in the valuation process?
8
What are the steps in the Valuation Process
- Identify the problem
- Scope of Work Determination
- Data Collection and Property Description
- Data Analysis
- Land Value Opinion
- Application of the Approaches to Value
- Reconciliation of value indications and Final Opinion of Value
- Report of Final Opinion of Value
In our valuation career the foundation that we build upon is called
ethical principles
Data Collection and property Description
(3 areas) in the Valuation Process
- Market Area Data
- Subject Property Data
- Comparable Property Data
Two areas of Data Analysis in the Valuation process?
- Market Analysis
2. Highest and Best Use Analysis
What are the applications of the approaches to Value?
- Sales Comparison Approach
- Income Capitalization Approach
- Cost Approach
In the Valuation Process what is involved with identification of the Problem
- Identify client and intended users
- Identify the intended use
- Identify the purpose of the assignment (type and definition of value)
- Identify the relevant characteristics of the property
- Identify assignment conditions
If you were to picture your career as a high-rise building with each floor representing one year of experience, what kind of foundation would you need to support 30 stories?
Ethical Principles
In order to protect public trust, appraisers must develop and communicate their work in a manner that is _________
meaningful and does not misrepresent their services to the intended users of their services.
What four characteristics define what an appraiser if all about?
- Impartial or neutral
- Objective or fair-minded
- Independent or autonomous
- Free of self-interest
Appraisers have an obligation to_________ as they perform valuation services for their clients.
Protect public trust
When an individual is ______________________, he or she must perform assignments ethically and competently.
acting in the role of an appriser
Being competent requires that an appraiser _______________________
assess his own proficiency to complete the job competently before accepting an assignment.