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BASIC APPRAISAL PROCEDURES – MCKISSOCK
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BASIC APPRAISAL PROCEDURES – MCKISSOCK
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BASIC APPRAISAL PROCEDURES – MCKISSOCKValuation process - Answers-A systematic procedure used in the valuation of real
property.
Client - Answers-The party or parties who engage, by employment or contract, an
appraiser in a specific assignment.
Steps in Defining the problem - 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
Real property - Answers-The interests, benefits, and rights inherent in the ownership of
real estate.
Market Value - Answers-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 - Answers-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 - Answers-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 - Answers-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 - Answers-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 - Answers-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 - Answers-The type and extent of research and analyses in an
assignment.
Workfile - Answers-Documentation necessary to support an appraiser's analyses,
opinions, and conclusions
, Steps in the Valuation Process - Answers-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) - Answers-1. Legally permissible 2. Physically
possible. 3. Financially feasible. 4. Maximally productive
General data - Answers-Items of information on value influences that derive from social,
economic, governmental, and environmental forces and originate outside the property
being appraised.
Specific data - Answers-Details about the property being appraised, comparable sale
and rental properties, and relevant local market characteristics.
U.S. Bureau of the Census - Answers-The largest repository of demographics
Professional or trade associations offering general data - Answers-National Association
of Homebuilders; National Association of Realtors; Appraisal Institute
Sources of Specific Data - Answers-Deeds; Location maps; Tax maps; Flood maps;
Assessor's records; Title companies; Zoning ordinances; Multiple listing services
Special Flood Hazard Area Designation - Answers-FEMA Zones A or V
Information in Deed - Answers-The 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 - Answers-Agents and Brokers
Land - Answers-The 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 - Answers-Land that is improved so that it is ready to be used for a specific
purpose.
Brownfield - Answers-An industrial or commercial site that is abandoned or underused
because it suffers from real or perceived continuing contamination.
Site Valuation Methods - Answers-SALES COMPARISON; EXTRACTION;
ALLOCATION; SUBDIVISION DEVELOPMENT; LAND RESIDUAL; GROUND RENT
CAPITALIZATION
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