Standard 1: Real property appraisal, development Flashcards
What is true about STANDARD 1?
It is paired with STANDARD 2.
Module 7: Module 7 Overview
What is the first task an appraiser undertakes when contacted by a client with a request to perform an appraisal?
Identify the problem to be solved.
When developing a real property appraisal, an appraiser
must be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.
What two terms in the Comment to the definition of “credible” help clarify the components of “support”?
evidence and logic
Module 7: STANDARD 1
Appraisers can use STANDARD 1 as a checklist because it follows the reqs in the
Appraisal development process
Module 7: STANDARD 1
An appraiser’s assignment results must be credible, which means the results
are worthy of belief
Module 7: STANDARD 1
What assignment condition would an appraiser use when appraising a property with a building that is proposed with a current date of value?
hypothetical conditon
Module 7: Standards Rule 1-2
When can an appraiser complete an appraisal based on an extraordinary assumption?
when required to properly develop credible opinions and conclusions
Module 7: Standards Rule 1-2
An appraiser is analyzing a comparable sale that includes favorable financing. What does the appraiser need to address if the appraisals is for market value?
The appraiser should identify the favorable financing terms and develop an opinion of their effect on value.
Identification of the intended use of the appraiser’s assignment results is
essential to determine the appropriate scope of work.
What is the effective date of an appraisal?
the date of the value opinion
The response to “what is resonable exposure time” should instigate what other question?
For what kind of property at what value range?
Module 7: Standards Rule 1-2 - Vid Case Study
When does USPAP require an appraiser to analyze a probable land use change in a real property appraisal assignment?
when necessary for credible assignment results
When the sales comparison approach is necessary for credible assignment results, an appraiser
must analyze data on comparable sales.
When an appraiser identifies and analyzes the effect of existing land use regulations, what else must be considered?
all of these answers
* economic supply and demand
* probability that the land use regulation might be modified
* market area trends
When a valuation assignment includes an opinion of market value, what must the appraisal development include when it is necessary for credible assignment results?
identify and analyze the effect on land use and develop an opinion of the highest and best use
Module 7: Standards Rule 1-3
When the property has the valuation of trade fixtures included in the scope of work, what does SR 1-4 require in this situation
The trade fixtures must be analyzed for the effect on value, and the appraiser must have the necessary expertise to do so.
In a real property assignment, the appraiser must analyze all sales and other transfers of the subject property within what time period?
three years prior to the effective date
To a large degree, “normal course of business” is controlled by the
scope of work.
Module 7: Standards Rule 1-5
The last procedure in the development of an appraisal reqs an appraiser to
reconcile the data and the relevancy of the approaches used to arrive at the value conclusion.
What determines the “normal course of business” for a given assignment?
actions of an appraiser’s peers and the expectations of parties who are regularly intended users for similar assignments
