McKissock - General Report Writing and
Case Studies UPDATED ACTUAL
Questions and CORRECT Answers
Appraisal - CORRECT ANSWER✔✔- "(noun) The act or process of developing an opinion
of value. an opinion of value; (adjective) of or pertaining to appraising and related functions
such as appraisal practice or appraisal services."1
Report - CORRECT ANSWER✔✔- any communication, written or oral, of an appraisal or
appraisal review that is transmitted to the client or a party authorized by the client upon
completion of an assignment. 2
Client - CORRECT ANSWER✔✔- "The party or parties who engage, by employment or
contract, an appraiser in a specific assignment.Comment: The client may be an individual,
group, or entity, and may engage and communicate with the appraiser directly or through an
agent."3
Date of the Report - CORRECT ANSWER✔✔- The date that the appraiser completed and
transmitted the appraisal report to the client. It is usually - but not always - different from the
effective date of value stated in the appraisal report.
Effective Date - CORRECT ANSWER✔✔- The date to which the value applies. It can be
current, prospective, or retrospective. The effective date of value establishes the viewpoint
from which the appraiser viewed the appraisal problem.
Intended use - CORRECT ANSWER✔✔- "the use(s) 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."4
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, based on
communication with the client at the time of the assignment."5
Personal Property - CORRECT ANSWER✔✔- "Identifiable tangible objects that are
considered by the general public as being 'personal' (e.g., furnishings, artwork, antiques,
,gems and jewelry, collectibles, machinery and equipment; all tangible property that is not
classified as real estate."6
Real Estate - CORRECT ANSWER✔✔- "An identified parcel or tract of land, including
improvements, if any."7
Real Property - CORRECT ANSWER✔✔- "The interests, benefits and rights inherent in the
ownership of real estate".8
This often is referred to as the "bundle of rights" associated with owning real estate. These
rights include: - CORRECT ANSWER✔✔- The right to sell the property;
The right to lease or rent the property;
The right to use the property;
The right to give the property away;
The right to enter or leave the property; and
The right to refuse to do anything with the property.
To determine the appropriate scope of work for the individual assignment, the appraiser must:
- CORRECT ANSWER✔✔- -Rely on the information gained in the first step of the appraisal
process. Proper identification of the problem is essential.
-Ensure that he or she has the knowledge, experience, and competency to accomplish this
assignment.
-Determine the client's expectations for this type of assignment.
-Not allow the assignment conditions to limit his or her ability to arrive at a credible opinion
of value, given the intended use of the appraisal.
-Be able to support the decision for the level of work to be accomplished.
-Be prepared to defend the research and analysis he or she decided was not required for this
assignment's credible opinion of value.
Ethics Rule of USPAP - CORRECT ANSWER✔✔- "An appraiser must promote and
preserve the public trust inherent in appraisal practice by observing the highest standards of
professional ethics. An appraiser must comply with USPAP when obligated by law or
regulation, or by agreement with the client or intended users. In addition to these
requirements, an individual should comply any time that individual represents that he or she
is performing the service as an appraiser."1
,Among the requirements, USPAP states: - CORRECT ANSWER✔✔- "In reporting the
results of a real property appraisal, an appraiser must communicate each analysis, opinion,
and conclusion in a manner that is not misleading.
Comment: STANDARD 2 addresses the content and level of information required in a report
that communicates the results of a real property appraisal.
STANDARD 2 does not dictate the form, format, or style of real property appraisal reports.
The form, format, and style of a report are functions of the needs of intended users and
appraisers. The substantive content of a report determines its compliance.
Each written or oral real property report must include: - CORRECT ANSWER✔✔- -clearly
and accurately set forth the appraisal in a manner that will not be misleading;
-contain sufficient information to enable the intended users of the appraisal to understand the
report properly; and
-clearly and accurately disclose all assumptions, extraordinary assumptions, hypothetical
conditions, and limiting conditions used in the assignment."2
Standard Rule 2-2 - CORRECT ANSWER✔✔- (a) The content of an Appraisal Report must
be consistent with the intended use of the appraisal and, at a minimum:
(i) state the identity of the client, unless the client has specifically requested otherwise; state
the identity of any intended users by name or type;
(ii) state the intended use of the appraisal;
(iii) summarize information sufficient to identify the real estate involved in the appraisal,
including the physical, legal, and economic property characteristics relevant to the
assignment;
(iv) state the real property interest appraised;
(v) state the type and definition of value and cite the source of the definition;
Standard Rule 2-2 Cont: - CORRECT ANSWER✔✔- (vi) state the effective date of the
appraisal and the date of the report;
(vii) summarize the scope of work used to develop the appraisal;
(viii) summarize the information analyzed, the appraisal methods and techniques employed,
and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales
comparison approach,
(ix) state the use of the real estate existing as of the date of value and the use of the real estate
reflected in the appraisal;
, (x) when an opinion of highest and best use was developed by the appraiser, summarize the
support and rationale for that opinion;
Standard Rule 2-2 Cont II: - CORRECT ANSWER✔✔- (xi) clearly and conspicuously:
state all extraordinary assumptions and hypothetical conditions; and
state that their use might have affected the assignment results; and
(xii) include a signed certification in accordance with Standards Rule 2-3.1
FIRREA Market Value Definition Developed by Federal Regulatory Agencies: - CORRECT
ANSWER✔✔- Market value means the most probable price which a property should bring
in a competitive and open market under all conditions requisite to a fair sale, the buyer and
seller each acting prudently and knowledgeably, and assuming the price is not affected by
undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date
and the passing of title from seller to buyer under conditions whereby:
-buyer and seller are typically motivated;
-both parties are well informed or well advised and acting in what they consider their own
best interests;
-a reasonable time is allowed for exposure in the open market;
-payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
-the price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
Exposure time is defined in USPAP as: - CORRECT ANSWER✔✔- EXPOSURE TIME:
estimated length of time that the property interest being appraised would have been offered
on the market prior to the hypothetical consummation of a sale at market value on the
effective date of the appraisal. (Comment: Exposure time is a retrospective opinion based on
an analysis of past events assuming a competitive and open market.1)
Which of the following describes or explains what is meant by "the effective date of value" of
an appraisal?
The date the appraisal report was completed
The date the appraiser affixed his/her signature to the report
The date that the opinion of value applies to
Case Studies UPDATED ACTUAL
Questions and CORRECT Answers
Appraisal - CORRECT ANSWER✔✔- "(noun) The act or process of developing an opinion
of value. an opinion of value; (adjective) of or pertaining to appraising and related functions
such as appraisal practice or appraisal services."1
Report - CORRECT ANSWER✔✔- any communication, written or oral, of an appraisal or
appraisal review that is transmitted to the client or a party authorized by the client upon
completion of an assignment. 2
Client - CORRECT ANSWER✔✔- "The party or parties who engage, by employment or
contract, an appraiser in a specific assignment.Comment: The client may be an individual,
group, or entity, and may engage and communicate with the appraiser directly or through an
agent."3
Date of the Report - CORRECT ANSWER✔✔- The date that the appraiser completed and
transmitted the appraisal report to the client. It is usually - but not always - different from the
effective date of value stated in the appraisal report.
Effective Date - CORRECT ANSWER✔✔- The date to which the value applies. It can be
current, prospective, or retrospective. The effective date of value establishes the viewpoint
from which the appraiser viewed the appraisal problem.
Intended use - CORRECT ANSWER✔✔- "the use(s) 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."4
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, based on
communication with the client at the time of the assignment."5
Personal Property - CORRECT ANSWER✔✔- "Identifiable tangible objects that are
considered by the general public as being 'personal' (e.g., furnishings, artwork, antiques,
,gems and jewelry, collectibles, machinery and equipment; all tangible property that is not
classified as real estate."6
Real Estate - CORRECT ANSWER✔✔- "An identified parcel or tract of land, including
improvements, if any."7
Real Property - CORRECT ANSWER✔✔- "The interests, benefits and rights inherent in the
ownership of real estate".8
This often is referred to as the "bundle of rights" associated with owning real estate. These
rights include: - CORRECT ANSWER✔✔- The right to sell the property;
The right to lease or rent the property;
The right to use the property;
The right to give the property away;
The right to enter or leave the property; and
The right to refuse to do anything with the property.
To determine the appropriate scope of work for the individual assignment, the appraiser must:
- CORRECT ANSWER✔✔- -Rely on the information gained in the first step of the appraisal
process. Proper identification of the problem is essential.
-Ensure that he or she has the knowledge, experience, and competency to accomplish this
assignment.
-Determine the client's expectations for this type of assignment.
-Not allow the assignment conditions to limit his or her ability to arrive at a credible opinion
of value, given the intended use of the appraisal.
-Be able to support the decision for the level of work to be accomplished.
-Be prepared to defend the research and analysis he or she decided was not required for this
assignment's credible opinion of value.
Ethics Rule of USPAP - CORRECT ANSWER✔✔- "An appraiser must promote and
preserve the public trust inherent in appraisal practice by observing the highest standards of
professional ethics. An appraiser must comply with USPAP when obligated by law or
regulation, or by agreement with the client or intended users. In addition to these
requirements, an individual should comply any time that individual represents that he or she
is performing the service as an appraiser."1
,Among the requirements, USPAP states: - CORRECT ANSWER✔✔- "In reporting the
results of a real property appraisal, an appraiser must communicate each analysis, opinion,
and conclusion in a manner that is not misleading.
Comment: STANDARD 2 addresses the content and level of information required in a report
that communicates the results of a real property appraisal.
STANDARD 2 does not dictate the form, format, or style of real property appraisal reports.
The form, format, and style of a report are functions of the needs of intended users and
appraisers. The substantive content of a report determines its compliance.
Each written or oral real property report must include: - CORRECT ANSWER✔✔- -clearly
and accurately set forth the appraisal in a manner that will not be misleading;
-contain sufficient information to enable the intended users of the appraisal to understand the
report properly; and
-clearly and accurately disclose all assumptions, extraordinary assumptions, hypothetical
conditions, and limiting conditions used in the assignment."2
Standard Rule 2-2 - CORRECT ANSWER✔✔- (a) The content of an Appraisal Report must
be consistent with the intended use of the appraisal and, at a minimum:
(i) state the identity of the client, unless the client has specifically requested otherwise; state
the identity of any intended users by name or type;
(ii) state the intended use of the appraisal;
(iii) summarize information sufficient to identify the real estate involved in the appraisal,
including the physical, legal, and economic property characteristics relevant to the
assignment;
(iv) state the real property interest appraised;
(v) state the type and definition of value and cite the source of the definition;
Standard Rule 2-2 Cont: - CORRECT ANSWER✔✔- (vi) state the effective date of the
appraisal and the date of the report;
(vii) summarize the scope of work used to develop the appraisal;
(viii) summarize the information analyzed, the appraisal methods and techniques employed,
and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales
comparison approach,
(ix) state the use of the real estate existing as of the date of value and the use of the real estate
reflected in the appraisal;
, (x) when an opinion of highest and best use was developed by the appraiser, summarize the
support and rationale for that opinion;
Standard Rule 2-2 Cont II: - CORRECT ANSWER✔✔- (xi) clearly and conspicuously:
state all extraordinary assumptions and hypothetical conditions; and
state that their use might have affected the assignment results; and
(xii) include a signed certification in accordance with Standards Rule 2-3.1
FIRREA Market Value Definition Developed by Federal Regulatory Agencies: - CORRECT
ANSWER✔✔- Market value means the most probable price which a property should bring
in a competitive and open market under all conditions requisite to a fair sale, the buyer and
seller each acting prudently and knowledgeably, and assuming the price is not affected by
undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date
and the passing of title from seller to buyer under conditions whereby:
-buyer and seller are typically motivated;
-both parties are well informed or well advised and acting in what they consider their own
best interests;
-a reasonable time is allowed for exposure in the open market;
-payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
-the price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
Exposure time is defined in USPAP as: - CORRECT ANSWER✔✔- EXPOSURE TIME:
estimated length of time that the property interest being appraised would have been offered
on the market prior to the hypothetical consummation of a sale at market value on the
effective date of the appraisal. (Comment: Exposure time is a retrospective opinion based on
an analysis of past events assuming a competitive and open market.1)
Which of the following describes or explains what is meant by "the effective date of value" of
an appraisal?
The date the appraisal report was completed
The date the appraiser affixed his/her signature to the report
The date that the opinion of value applies to
