Module 20 Valuation Services

Question 1

Appraisal practice is a subset of

Answer 1

valuation services

Question 2

Two primary types of appraisal practice

Answer 2

appraisal and

appraisal review

Question 3

A service pertaining to an aspect of property value, regardless of the type of service and whether it is performed by appraisers or by others

Answer 3

Valuation service

Question 4

Valuation services pertain to all aspects of property value and include services such as

Answer 4

appraisal practice
brokerage
auctioning
property management
real property consulting
advocate consulting
collecting market data

Question 5

Individuals performing valuation services can be appraisers

Answer 5

or others.  These can be
lawyers
brokers
accountants
auctioneers

Question 6

_______ is a property service “performed by an individual acting as an appraiser (USPAP, definition)

Answer 6

Appraisal
Appraisal review
Other services while acting as an appraiser.

Question 7

How many categories of appraisal practice are there

Answer 7

4

Question 8

What are the 4 categories of appraisal practice?

Answer 8

1. Appraisal
2. Appraisal review
3. Appraisal consulting
4. Other services while representing one’s self as an appraiser.

Question 9

_______ plays an important role when an appraiser is retained to perform valuation services.

Answer 9

Client expectation

Question 10

“One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.

Answer 10

Appraiser

Question 11

What are the two primary services of appraisal practice>

Answer 11

Appraisal

Appraisal review

Question 12

The act or process of developing an opinion of value;

Answer 12

Appraisal

Question 13

“The act or process of developing an opinion about the quality of another appraiser’s work, that was performed as part of an appraisal or appraisal review assignment.

Answer 13

Appraisal review

Question 14

The type and extent of research and analyses in an appraisal or appraisal review assignment

Answer 14

Scope of work

Question 15

The client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment.

Answer 15

Intended user

Question 16

The use of an appraiser’s reported appraisal or appraisal review assignment results, as identified by the appraiser based on communication with the client at the time of the assignment

Answer 16

Intended use

Question 17

The objective of an assignment e.g., in an appraisal assignment, to develop an opinion of the defined value of a specified interest in real estate.

Answer 17

Purpose of an assignment

Question 18

Scope of work encompasses three aspects;

Answer 18

1. your strategy to solve the client’s problem at the time you accept the assignment
2. What you actually did to solve the client’s problem
3. disclosure in your report of how you solved the client problem.

Question 19

Scope of use

Purpose
(type of Value) Value type must be defined

Answer 19

An appraiser must state the type of value to be used in the assignment plus cite the definition of value used from an authoritative source

Question 20

Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work.

Answer 20

Assignment conditions

Question 21

Extraordinary assumptions and hypothetical conditions are two common types of

Answer 21

assignment conditions employed for specific uses by appraisers.

Question 22

An __________ assumes as fact otherwise uncertain information about the property.

Answer 22

extraordinary assumption

Question 23

An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions

Answer 23

Extraordinary assumption

example; drive by appraisal
assumption about the inside

Question 24

A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis

Answer 24

Hypothetical condition

“what if” scenario

look at a property as if it were rezoned, or if the renovation work were completed.

Question 25

The purpose of the appraisal is another term for the

Answer 25

type and definition of value

Question 26

Prior to accepting an assignment, an appraiser decideds on the type and extent of the research and analyses that will be necessary for the assignment in order to produce credible results. What term best identifies what the appraiser it trying to determine?

Answer 26

Scope of work

Question 27

Appraisal practice is a subset of

Answer 27

valuation services

Question 28

An appraiser teaching an appraisal course is performing appraisal practice

Answer 28

true

Question 29

_______ is an important component of appraisal practice.

Answer 29

Independence

Question 30

In a scope of work decision, an opinion of market value and its definition is the element that is also known as

Answer 30

????

Question 31

Valuation services may be performed by which of the following?
Accountants
Appraisers
real estate agents
all these answers are correct

Answer 31

all of the above are correct

Question 32

Assessor’s work is part of appraisal practice?

Answer 32

True

Question 33

The act or process of developing an opinion about the quality of another’s work is called

Answer 33

appraisal review

Question 34

When a value type is defined in the scope of work, such as an opinion of market value in a real property assignment, this is also referred to as the _________ of the assignment.

Answer 34

Purpose

Question 35

If the _______ decision is flawed, there is a strong chance the assignment results will be misleading.

Answer 35

scope of work

Question 36

The party the appraiser identifies by name or type as a user of the appraisal report is an intended user.

True of False

Answer 36

True