Part 20 Vocab

Question 1

Each written real property appraisal report must contain a signed _____. It is an integral part of the report. An appraiser who signs any part of the report, including the letter of transmittal, must also sign this. The appraiser who signs this accepts full responsibility for all elements of the certification for the assignment results, and for the contents of the appraisal report.

Answer 1

appraiser’s certification

Question 2

the opion of value that is derived from final reconciliation of value indications and stated in the appraisal report; may be expressed as a single point, as a range, or in relation to a benchmark.

Answer 2

final opinion of value

Question 3

Meet the needs of many financial institutions, insurance companies, and government agencies. They are required for the sale of most existing mortgages on the secondary market. They must meet the reporting requirements of all applicable standards including USPAP and the SVP. If the _____ report does not conform, supplementary material must be added. If the highest and best use does not conform to the use for the ____ it can’t be used. It is unacceptable if the appraiser fails to:

• consider the purpose of the report, the value definition, and assumptions and conditions inherent in it.
• question the client about any underwritting criteria that conflict with proper appraisal practice
• review the report before signing it

Answer 3

form reports

Question 4

A ____ is like a representative agent of hte appraiser and will reflect on the appraiser’s competence and reputation. Suggestions are:

a) Use good quality materials in regard to paper, cover, and binding.
b. Professionally type and print the report. Prepare graphics and charts carefully.
c. Ideally, illustrations should be on pages facing the material being discussed.
d. Design the contents for maximum communication. Label sections clearly and identify them in the table of contents.
e. Keep contents concise and on point.
f. Write the report clearly, avoiding technical jargon and slang.

2. Format. The organization of data may vary, but generally, the report’s presentation should follow the order of the valuation process.

Answer 4

narrative reports

Question 5

an appraiser may make an ____ when the circumstances or the needs of the client do not permit or warrant a written report. Expert testimony, in depositions or in court is considered this type of report. They must comply with professional standards. After communicating an ____ the appraiser must maintain a workfile in support of the communication sufficient for the appraiser to produce an Appraisal Report or Apprisal Review Report.

Answer 5

oral reports

Question 6

a final value indication reported as a single dollar amount. Typically regarded as the most probable number, not the only possible number, and often required for revenue and compensation purposes.

Answer 6

point estimate

Question 7

the range, or confidence interval, in which the final market value opinion of a property may fall; usually the range in value is stated as a variable amount between a high and low value limit

Answer 7

range of value

Question 8

How the appraiser gets to the final opinion of value. ___ requires appraisal judgment and a careful, logical analysis of the data available and the approaches, methods, and techniques applied that lead to each value indication. The following criteria aid the appraiser in forming a meaningful and defensible final opinion of value:

• appropriateness (including applicability, relevancy)
• accuracy
• quantity and quality of evidence

Answer 8

reconciliation

Question 9

The criteria that enable an appraiser to form a
meaningful, defensible conclusion about the final value opinion. Value indications are tested for the appropriateness of the approaches and adjustments applied, the accuracy of the data, and the quality and quantity of evidence analyzed.

Answer 9

reconciliation criteria

Question 10

Professional appraisal standards require that an appraiser prepare a ____ for each appraisal or appraisal review assignment. The ____ must contain the following items:

1. The name of the client and identity (by name or by type) of any other intended users.
2. A written report must have a true copy of the report documented on any type of media.
3. Oral reports must include summaries of oral testimony or reporting, or a transcript of testimony, including the appraiser’s signed and dated certification.
4. All data, information, and documentation that are necessary to support the appraiser’s opinions and conclusions must be supplied.
   - the appraiser must retain the ___ for a period of at least 5 years after preparation or at least 2 years after provided testimony related to the assignment, whichever period expires last.
   - In accordance with professional appraisal standards, an appraiser must have custody of his or her ____ or make appropriate arrangements to retain, access, and retrieve contents from the party who has custody of the ____.

Answer 10

workfile

Question 11

Probability range

Answer 11

the confidence level associated with a specific value opinion or set of value opinions. The option ahs to do with assigning probabilities to each of the value indications and then arriving at a weighted average. Generally not the preferred method as it implies a certain mathematical precision to the reconciliation process which should be thought of as a judgmental process.