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Basic Appraisal Procedures - McKissock Questions with solutions
Basic Appraisal Procedures - McKissock
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Basic Appraisal Procedures - McKissockValuation process - answerA systematic procedure used in the valuation of real
property.
Client - answerThe party or parties who engage, by employment or contract, an
appraiser in a specific assignment.
Steps in Defining the problem - answerIdentification 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 - answerThe interests, benefits, and rights inherent in the ownership of
real estate.
Market Value - answerA 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 - answerThe 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 - answerThe 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 - answerThe ____________ can be a past (retrospective),
current or future (prospective) date. This decision will be made in concert with the
client's needs.
Extraordinary assumption - answerAn 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 - answerA 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 - answerThe type and extent of research and analyses in an assignment.
, Workfile - answerDocumentation necessary to support an appraiser's analyses,
opinions, and conclusions
Steps in the Valuation Process - answer1. 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) - answer1. Legally permissible 2. Physically
possible. 3. Financially feasible. 4. Maximally productive
General data - answerItems of information on value influences that derive from social,
economic, governmental, and environmental forces and originate outside the property
being appraised.
Specific data - answerDetails about the property being appraised, comparable sale and
rental properties, and relevant local market characteristics.
U.S. Bureau of the Census - answerThe largest repository of demographics
Professional or trade associations offering general data - answerNational Association of
Homebuilders; National Association of Realtors; Appraisal Institute
Sources of Specific Data - answerDeeds; Location maps; Tax maps; Flood maps;
Assessor's records; Title companies; Zoning ordinances; Multiple listing services
Special Flood Hazard Area Designation - answerFEMA Zones A or V
Information in Deed - answerThe legal description of the property; The owners of
record; Easements of record; Deed restrictions; Chain of title (when the property was
purchased and from whom)
Primary intended user for MLS information - answerAgents and Brokers
Land - answerThe earth's surface, both land and water, and anything that is attached to
it whether by the course of nature or human hands; all natural resources in their original
state, e.g., mineral deposits, wildlife, timber, fish, water, coal deposits, soil.
Site - answerLand that is improved so that it is ready to be used for a specific purpose.
Brownfield - answerAn industrial or commercial site that is abandoned or underused
because it suffers from real or perceived continuing contamination.
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