Basic Appraisal Procedures – McKissock
Exam Questions With Correct Answers
Valuation process - CORRECT ANSWER✔✔-A systematic procedure used
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in the valuation of real property.
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Client - CORRECT ANSWER✔✔-The party or parties who engage, by
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employment or contract, an appraiser in a specific assignment. | | | | | | | |
Steps in Defining the problem - CORRECT ANSWER✔✔-Identification
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and location of the real estate; Identification of the property rights;
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Definition of value; Purpose and intended use of the appraisal; Effective
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date of the opinion of value; Any special limiting conditions
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Real property - CORRECT ANSWER✔✔-The interests, benefits, and
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rights inherent in the ownership of real estate.
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Market Value - CORRECT ANSWER✔✔-A type of value, stated as an
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opinion, that presumes the transfer of a property (i.e., a right of
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ownership or a bundle of such rights), as of a certain date, under
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specific conditions set forth in the definition of the term identified by
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the appraiser as applicable in an appraisal.
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,Intended Use - CORRECT ANSWER✔✔-The use or uses of an appraiser's
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reported appraisal or appraisal review assignment opinions and
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conclusions, as identified by the appraiser based on communication
| | | | | | | | |
with the client at the time of the assignment.
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Intended User - CORRECT ANSWER✔✔-The client and any other party
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as identified, by name or type, as users of the appraisal or appraisal
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review report by the appraiser on the basis of communication with the
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client at the time of the assignment.
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Effective Date of the Value - CORRECT ANSWER✔✔-The ____________
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can be a past (retrospective), current or future (prospective) date. This
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decision will be made in concert with the client's needs.
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Extraordinary assumption - CORRECT ANSWER✔✔-An assumption, | | | | | |
directly related to a specific assignment, as of the effective date of the
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assignment results, which, if found to be false, could alter the
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appraiser's opinions or conclusions. | | |
Hypothetical Condition - CORRECT ANSWER✔✔-A condition, directly
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related to a specific assignment, which is contrary to what is known by
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the appraiser to exist on the effective date of the assignment results,
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but is used for the purpose of analysis.
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, Scope of work - CORRECT ANSWER✔✔-The type and extent of research
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and analyses in an assignment.
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Workfile - CORRECT ANSWER✔✔-Documentation necessary to support
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an appraiser's analyses, opinions, and conclusions
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Steps in the Valuation Process - CORRECT ANSWER✔✔-1. Define the
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problem 2. Determine scope of work 3. Gather, record, and verify the
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data 4. Determine the highest and best use 5. Estimate the land value 6.
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Estimate value by each of the three approaches (if applicable) 7.
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Reconcile the estimated values into the final opinion of value 8. Report
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the final opinion of value
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Highest and Best Use Criteria (in order) - CORRECT ANSWER✔✔-1.
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Legally permissible 2. Physically possible. 3. Financially feasible. 4.
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Maximally productive |
General data - CORRECT ANSWER✔✔-Items of information on value
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influences that derive from social, economic, governmental, and
| | | | | | | |
environmental forces and originate outside the property being | | | | | | | |
appraised.
Specific data - CORRECT ANSWER✔✔-Details about the property being
| | | | | | | | |
appraised, comparable sale and rental properties, and relevant local
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market characteristics. |
Exam Questions With Correct Answers
Valuation process - CORRECT ANSWER✔✔-A systematic procedure used
| | | | | | |
in the valuation of real property.
| | | | | |
Client - CORRECT ANSWER✔✔-The party or parties who engage, by
| | | | | | | | | |
employment or contract, an appraiser in a specific assignment. | | | | | | | |
Steps in Defining the problem - CORRECT ANSWER✔✔-Identification
| | | | | | | |
and location of the real estate; Identification of the property rights;
| | | | | | | | | | |
Definition of value; Purpose and intended use of the appraisal; Effective
| | | | | | | | | | |
date of the opinion of value; Any special limiting conditions
| | | | | | | | |
Real property - CORRECT ANSWER✔✔-The interests, benefits, and
| | | | | | | |
rights inherent in the ownership of real estate.
| | | | | | |
Market Value - CORRECT ANSWER✔✔-A type of value, stated as an
| | | | | | | | | | |
opinion, that presumes the transfer of a property (i.e., a right of
| | | | | | | | | | | |
ownership or a bundle of such rights), as of a certain date, under
| | | | | | | | | | | | |
specific conditions set forth in the definition of the term identified by
| | | | | | | | | | | |
the appraiser as applicable in an appraisal.
| | | | | |
,Intended Use - CORRECT ANSWER✔✔-The use or uses of an appraiser's
| | | | | | | | | | |
reported appraisal or appraisal review assignment opinions and
| | | | | | | |
conclusions, as identified by the appraiser based on communication
| | | | | | | | |
with the client at the time of the assignment.
| | | | | | | |
Intended User - CORRECT ANSWER✔✔-The client and any other party
| | | | | | | | | |
as identified, by name or type, as users of the appraisal or appraisal
| | | | | | | | | | | | |
review report by the appraiser on the basis of communication with the
| | | | | | | | | | | |
client at the time of the assignment.
| | | | | |
Effective Date of the Value - CORRECT ANSWER✔✔-The ____________
| | | | | | | | |
can be a past (retrospective), current or future (prospective) date. This
| | | | | | | | | | |
decision will be made in concert with the client's needs.
| | | | | | | | |
Extraordinary assumption - CORRECT ANSWER✔✔-An assumption, | | | | | |
directly related to a specific assignment, as of the effective date of the
| | | | | | | | | | | | |
assignment results, which, if found to be false, could alter the
| | | | | | | | | | |
appraiser's opinions or conclusions. | | |
Hypothetical Condition - CORRECT ANSWER✔✔-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.
| | | | | | |
, Scope of work - CORRECT ANSWER✔✔-The type and extent of research
| | | | | | | | | | |
and analyses in an assignment.
| | | |
Workfile - CORRECT ANSWER✔✔-Documentation necessary to support
| | | | | | |
an appraiser's analyses, opinions, and conclusions
| | | | |
Steps in the Valuation Process - CORRECT ANSWER✔✔-1. Define the
| | | | | | | | | |
problem 2. Determine scope of work 3. Gather, record, and verify the
| | | | | | | | | | | |
data 4. Determine the highest and best use 5. Estimate the land value 6.
| | | | | | | | | | | | | |
Estimate value by each of the three approaches (if applicable) 7.
| | | | | | | | | | |
Reconcile the estimated values into the final opinion of value 8. Report
| | | | | | | | | | | |
the final opinion of value
| | | |
Highest and Best Use Criteria (in order) - CORRECT ANSWER✔✔-1.
| | | | | | | | | |
Legally permissible 2. Physically possible. 3. Financially feasible. 4.
| | | | | | | | |
Maximally productive |
General data - CORRECT ANSWER✔✔-Items of information on value
| | | | | | | | |
influences that derive from social, economic, governmental, and
| | | | | | | |
environmental forces and originate outside the property being | | | | | | | |
appraised.
Specific data - CORRECT ANSWER✔✔-Details about the property being
| | | | | | | | |
appraised, comparable sale and rental properties, and relevant local
| | | | | | | | |
market characteristics. |
