Module 20 Valuation Services Flashcards
Appraisal practice is a subset of
valuation services
Two primary types of appraisal practice
appraisal and
appraisal review
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
Valuation service
Valuation services pertain to all aspects of property value and include services such as
appraisal practice brokerage auctioning property management real property consulting advocate consulting collecting market data
Individuals performing valuation services can be appraisers
or others. These can be lawyers brokers accountants auctioneers
_______ is a property service “performed by an individual acting as an appraiser (USPAP, definition)
Appraisal
Appraisal review
Other services while acting as an appraiser.
How many categories of appraisal practice are there
4
What are the 4 categories of appraisal practice?
- Appraisal
- Appraisal review
- Appraisal consulting
- Other services while representing one’s self as an appraiser.
_______ plays an important role when an appraiser is retained to perform valuation services.
Client expectation
“One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.
Appraiser
What are the two primary services of appraisal practice>
Appraisal
Appraisal review
The act or process of developing an opinion of value;
Appraisal
“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.
Appraisal review
The type and extent of research and analyses in an appraisal or appraisal review assignment
Scope of work
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.
Intended user
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
Intended use
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.
Purpose of an assignment
Scope of work encompasses three aspects;
- your strategy to solve the client’s problem at the time you accept the assignment
- What you actually did to solve the client’s problem
- disclosure in your report of how you solved the client problem.
Scope of use
Purpose
(type of Value) Value type must be defined
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
Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work.
Assignment conditions
Extraordinary assumptions and hypothetical conditions are two common types of
assignment conditions employed for specific uses by appraisers.
An __________ assumes as fact otherwise uncertain information about the property.
extraordinary assumption
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
Extraordinary assumption
example; drive by appraisal
assumption about the inside
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
Hypothetical condition
“what if” scenario
look at a property as if it were rezoned, or if the renovation work were completed.
The purpose of the appraisal is another term for the
type and definition of value
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?
Scope of work
Appraisal practice is a subset of
valuation services
An appraiser teaching an appraisal course is performing appraisal practice
true
_______ is an important component of appraisal practice.
Independence
In a scope of work decision, an opinion of market value and its definition is the element that is also known as
????
Valuation services may be performed by which of the following? Accountants Appraisers real estate agents all these answers are correct
all of the above are correct
Assessor’s work is part of appraisal practice?
True
The act or process of developing an opinion about the quality of another’s work is called
appraisal review
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.
Purpose
If the _______ decision is flawed, there is a strong chance the assignment results will be misleading.
scope of work
The party the appraiser identifies by name or type as a user of the appraisal report is an intended user.
True of False
True
