Module 1 Review Quiz

Question 1

Appraisers must develop and communicate their work in a manner that is meaningful and _____ their services to intended users.

Answer 1

doesn’t misrepresent

Question 2

An appraiser must not advocate the cause or interest of any ______

Answer 2

party or issue

Question 3

The appraiser must be prepared to demonstrate that the type and extent of research and analyses performed in the appraisal is sufficient to produce _____ assignment results.

Answer 3

credible

Question 4

An appraiser performing an assignment in an unfamiliar geographic location must spend sufficient time to understand the ______ of the local market.

Answer 4

nuances

Question 5

At what point must an appraiser be competent regarding an appraisal assignment?

Answer 5

at the completion of the assignment

Question 6

True or False: A series of errors in an appraisal is acceptable as long as it does not significantly affect the value conclusion.

Answer 6

False

Question 7

True or False: An appraiser must inform a client prior to accepting the assignment if he or she lacks the requisite training, information, and/or work experience to complete the assignment competently.

Answer 7

True

Question 8

True or False: A fee arrangement contingent on an appraiser’s value conclusion will help the appraiser to maintain impartiality and independence.

Answer 8

False

Question 9

True or False: In an assignment that involves a dispute between two parties, it is the appraiser’s duty to represent his client’s position

Answer 9

False

Question 10

True or False: The unethical practices of a few can sometimes damage public trust for an entire profession.

Answer 10

True

Question 11

How can increasing competency be fulfilled?
A) Personal Study
B) Association with another appraiser
C) Retaining others who possess the required knowledge/skills/experience
D) All the above
E) A and B only
F) B & C only

Answer 11

D) All the above

Question 12

If the appraiser is working on an existing assignment and determines he or she cannot complete the assignment competently, the appraiser must____?
A) Immediately cease work and refund the client
B) Immediately cease work and inform the client
C) Immediately seek to improve competency
D) Contact a more experienced appraiser for assistance

Answer 12

B) cease work and inform the client

Question 13

The items below are the six _____ in the _____ part of the appraisal process?

1) Identify the client and any other intended users
2) Identify the intended use
3) Identify the purpose (aka type and definition of value)
4) Identify the Effective Date of the valuer’s opinions and conclusions
5) Identify the subject of the assignment and its relevant characteristics
6) Identify the assignment conditions

Answer 13

assignment elements, problem identification

Question 14

True or False: the 6 assignment conditions are established throughout the appraisal assignment.

Answer 14

False: They are established before the assignment is is accepted and not modified or changed after that point

Question 15

Which of the following statements summarize an appraiser's ethical obligation?
A) organized, analytical, impartial
B) independent, impartial, objective
C) coherent, complete, independent
D) objective, fair, unbiased

Answer 15

B) independent, impartial, objective

Question 16

Sanchez is appraising a property for a client with the intended use of filing a tax appeal. In this type of assignment, which of the following choices best describes Sanchez’s role?
A) an advocate for the tax appeal board
B) a representative of the client’s position
C) an independent and impartial appraiser that is neutral to any position of the parties involved in the matter
D) an appraiser working for the client’s lawyer

Answer 16

C) an independent and impartial appraiser that is neutral to any position of the parties involved in the matter

Question 17

A competency issue best applies to which of the following examples?

A) the appraiser’s knowledge of a specific analytical method
B) the appraiser’s identification of the client and other intended users
C) the appraiser’s method of communicating the assignment results
D) the appraiser’s identification of the effective date of the value conclusion

Answer 17

A) the appraiser’s knowledge of a specific analytical method

Question 18

Being competent pertains to:
A) A market
B) specific laws or regulations
C) a particular approach
D) all of these answers
E) A & B only

Answer 18

D) all of these answers

Question 19

When developing a real property appraisal, an appraiser___
A) must use only those methods and techniques the appraiser is familiar with.
B) must be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.
C) can improvise valuation techniques when the assignment is complex and traditional methods don’t work.
D) must be aware that competency doesn’t require the appraiser to know the
best method or technique to solving the problem.

Answer 19

B) must be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.

Question 20

What is the likely result of an appraiser sufficiently diligent in their appraisal practice?
A) Assignment results that are credible
B) a substantial error of omission
C) employing unrecognized methods and techniques
D) committing a series of errors that undermine the credibility of the assignment results

Answer 20

A) Assignment results that are credible

Question 21

Which of the following is the best example of an appraiser that has performed an appraisal service in a careless or negligent manner?
A) The appraiser turned in the appraisal report past the date it was due.
B) The appraiser made a series of errors that individually might not significantly affect the results of the appraisal, but that in total affect the credibility of those results.
C) The appraisal report had several typos.
D) The appraiser mislabeled one of the rooms in the building sketch, although it
was correctly stated in the report content

Answer 21

B) The appraiser made a series of errors that individually might not significantly affect the results of the appraisal, but that in total affect the credibility of those results.

Question 22

The intended use of the appraisal is the appraiser’s understanding of?
A) who is responsible for the appraiser’s fee
B) which definition of value is to be used
C) if a scope of work description is needed
D) how the client will use the appraisal

Answer 22

D) how the client will use the appraisal

Question 23

The purpose of the assignment is also referred to as?
A) scope of work
B) type and definition of value
C) value opinion
D) the extent of research

Answer 23

B) type and definition of value

Question 24

Which of the following is one of the assignment elements that an appraiser must identify prior to acceptance?
A) assignment delivery date
B) assignment fee
C) assignment conditions
D) assignment expectations

Answer 24

C) assignment conditions

Question 25

An appraiser has the \_\_\_\_\_\_\_\_\_\_\_\_ to support the scope of work decision and the level of information included in a report.
A) burden of proof
B) range of options
C) choice
D) contractual obligation

Answer 25

A) burden of proof

Question 26

Which of the following statements is true?
A) Problem identification precedes the scope of work decision.
B) The scope of work is predetermined in a mortgage-related appraisal.
C) The scope of work determines the problem to be solved.
D) The assignment conditions control the type of report to be written.

Answer 26

A) Problem identification precedes the scope of work decision.

Question 27

What is the strategy for solving a client’s valuation problem in which the appraiser determines the type and extent of research and analyses the assignment requires?
A) intended use
B) scope of work
C) type and definition of value
D) appraisal plan

Answer 27

B) scope of work

Question 28

What is the best example of an appraiser employing improper appraisal methodology or technique?
A) deriving a value for the subject property by calculating the average of tax assessed values of properties located in the same neighborhood
B) analyzing vacant land sales and adjusting them based on differences in characteristics to the appraised property, which is a vacant site located in the same area as the sales properties
C) estimating the cost of a new commercial building for insurance purposes
D) analyzing leases of comparable properties to derive the market rent on a
retail commercial property

Answer 28

A) deriving a value for the subject property by calculating the average of tax assessed values of properties located in the same neighborhood