BASIC APPRAISAL PROCEDURES – MCKISSOCK VERIFIED QUESTIONS & ANSWERS

BASIC APPRAISAL PROCEDURES –
MCKISSOCK VERIFIED QUESTIONS
& ANSWERS
Valuation process - ANSWERS- nb nb nb


A systematic procedure used in the valuation of real property.
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Client - ANSWERS- nb nb


The party or parties who engage, by employment or contract, an appraiser in a sp
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ecific assignment. nb




Steps in Defining the problem - ANSWERS-
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Identification and location of the real estate; Identification of the property rights; De
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finition of value; Purpose and intended use of the appraisal; Effective date of the o
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pinion of value; Any special limiting conditions
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Real property - ANSWERS-
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The interests, benefits, and rights inherent in the ownership of real estate.
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Market Value - ANSWERS- nb nb nb


A type of value, stated as an opinion, that presumes the transfer of a property (i.e.
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, a right of ownership or a bundle of such rights), as of a certain date, under speci
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fic conditions set forth in the definition of the term identified by the appraiser as ap
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plicable in an appraisal. nb nb nb




Intended Use - ANSWERS- nb nb nb


The use or uses of an appraiser's reported appraisal or appraisal review assignme
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nt opinions and conclusions, as identified by the appraiser based on communicatio
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n with the client at the time of the assignment.
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Intended User - ANSWERS- nb nb nb


The client and any other party as identified, by name or type, as users of the appr
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aisal or appraisal review report by the appraiser on the basis of communication wit
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h the client at the time of the assignment.
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Effective Date of the Value - ANSWERS- nb nb nb nb nb nb


The ____________ can be a past (retrospective), current or future (prospective) d
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ate. This decision will be made in concert with the client's needs.
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Extraordinary assumption - ANSWERS- nb nb nb


An assumption, directly related to a specific assignment, as of the effective date of
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the assignment results, which, if found to be false, could alter the appraiser's opin
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ions or conclusions.
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, Hypothetical Condition - ANSWERS- nb nb nb


A condition, directly related to a specific assignment, which is contrary to what is k
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nown by the appraiser to exist on the effective date of the assignment results, but
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is used for the purpose of analysis.
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Scope of work - ANSWERS- nb nb nb nb


The type and extent of research and analyses in an assignment.
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Workfile - ANSWERS- nb nb


Documentation necessary to support an appraiser's analyses, opinions, and conclu
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sions

Steps in the Valuation Process - ANSWERS-
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1. Define the problem 2. Determine scope of work 3. Gather, record, and verify th
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e data 4. Determine the highest and best use 5. Estimate the land value 6. Estima
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te value by each of the three approaches (if applicable) 7. Reconcile the estimate
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d values into the final opinion of value 8. Report the final opinion of value
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Highest and Best Use Criteria (in order) - ANSWERS-
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1. Legally permissible 2. Physically possible. 3. Financially feasible. 4. Maximally p
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roductive

General data - ANSWERS- nb nb nb


Items of information on value influences that derive from social, economic, govern
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mental, and environmental forces and originate outside the property being apprais
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ed.

Specific data - ANSWERS- nb nb nb


Details about the property being appraised, comparable sale and rental properties,
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and relevant local market characteristics.
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U.S. Bureau of the Census - ANSWERS-The largest repository of demographics
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Professional or trade associations offering general data - ANSWERS-
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National Association of Homebuilders; National Association of Realtors; Appraisal I
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nstitute

Sources of Specific Data - ANSWERS- nb nb nb nb nb


Deeds; Location maps; Tax maps; Flood maps; Assessor's records; Title compani
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es; Zoning ordinances; Multiple listing services
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Special Flood Hazard Area Designation - ANSWERS-FEMA Zones A or V
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Information in Deed - ANSWERS- nb nb nb nb


The legal description of the property; The owners of record; Easements of record;
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Deed restrictions; Chain of title (when the property was purchased and from whom
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)

Primary intended user for MLS information - ANSWERS-Agents and Brokers
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