Valuation Process CORRECT ANSWERS: Systematic set of procedures an appraiser follows to provide answers to a clients questions about real property
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Appraisal Process CORRECT ANSWERS: 1. Define Problem
2. Determine scope of work
3. Gather Record & verify dat
4. determine highest and best use
5. estimate land value
6. est. value by all three approaches
7. Reconcile est. value into final opinion value
8. report the final opinion
defining problem CORRECT ANSWERS: 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
identification and location of the real estate CORRECT ANSWERS: usually with a legal description (metes and bounds, rectangular survey, lot and block) identify the characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal
Standards rule 1-2E of USPAP CORRECT ANSWERS: Identify the characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal
market value CORRECT ANSWERS: stated as an opinion that presumes the transfer of a property as of a certain date under specific conditions
Appraisers are cautioned to CORRECT ANSWERS: identify the exact definition of market value and its authority applicable in each appraisal completed for the purpose of market value
Standards 1-2c of USPAP CORRECT ANSWERS: identify type of value, if opinion to be developed market value, ascertain whether the value is to be the most probable price: terms of cash; terms of financial arrangements equ. to cahs; other terms; if not market value must be clearly identified
purpose of the assignment CORRECT ANSWERS: objective of assignment. ex: to develop an opinion of the defined value of a specified interest in real estate
intended user CORRECT ANSWERS: client and any other party as identified by name or type as users of the appraisal review report by the appraiser [Show Less]