Module 1

Question 1

____________ is a valuation service performed by an individual acting as an appraiser

Answer 1

Appraisal practice

Question 2

Professional services that come under appraisal practice include

Answer 2

1. Appraisal
2. appraisal review
3. appraisal consulting
4. other services while acting as an appraiser

Question 3

what is an appraisal

Answer 3

An appraisal is “the act or process of developing an opinion of value; an opinion of value

Question 4

Appraisals are commonly used in the following types of assignments:

Answer 4

1. Transfer of ownership
2. Financing and credit
3. Litigation
4. Tax Matters
5. Investment decisions

Question 5

The valuation process is a

Answer 5

systematic procedure employed by an appraiser to provide the answer to the client’s question about the value of the property..

Question 6

How many steps are in the valuation process?

Answer 6

8

Question 7

What are the steps in the Valuation Process

Answer 7

1. Identify the problem
2. Scope of Work Determination
3. Data Collection and Property Description
4. Data Analysis
5. Land Value Opinion
6. Application of the Approaches to Value
7. Reconciliation of value indications and Final Opinion of Value
8. Report of Final Opinion of Value

Question 8

In our valuation career the foundation that we build upon is called

Answer 8

ethical principles

Question 9

Data Collection and property Description

(3 areas) in the Valuation Process

Answer 9

1. Market Area Data
2. Subject Property Data
3. Comparable Property Data

Question 10

Two areas of Data Analysis in the Valuation process?

Answer 10

1. Market Analysis

2. Highest and Best Use Analysis

Question 11

What are the applications of the approaches to Value?

Answer 11

1. Sales Comparison Approach
2. Income Capitalization Approach
3. Cost Approach

Question 12

In the Valuation Process what is involved with identification of the Problem

Answer 12

1. Identify client and intended users
2. Identify the intended use
3. Identify the purpose of the assignment (type and definition of value)
4. Identify the relevant characteristics of the property
5. Identify assignment conditions

Question 13

If you were to picture your career as a high-rise building with each floor representing one year of experience, what kind of foundation would you need to support 30 stories?

Answer 13

Ethical Principles

Question 14

In order to protect public trust, appraisers must develop and communicate their work in a manner that is _________

Answer 14

meaningful and does not misrepresent their services to the intended users of their services.

Question 15

What four characteristics define what an appraiser if all about?

Answer 15

1. Impartial or neutral
2. Objective or fair-minded
3. Independent or autonomous
4. Free of self-interest

Question 16

Appraisers have an obligation to_________ as they perform valuation services for their clients.

Answer 16

Protect public trust

Question 17

When an individual is ______________________, he or she must perform assignments ethically and competently.

Answer 17

acting in the role of an appriser

Question 18

Being competent requires that an appraiser _______________________

Answer 18

assess his own proficiency to complete the job competently before accepting an assignment.

Question 19

The state of having the requisite or adequate ability or qualities to perform the specific assignment and produce credible assignment results.

Answer 19

Competence

Question 20

Before being engaged, an appraiser must determine his own competency to undertake the work. If not competent, the appraiser has 3 obligations.

Answer 20

1. Inform the client about the identified competency issues.
2. Complete all tasks and procedures essential for the assignment in a competent manner. (competency can be fulfilled by personal study, work with someone who does know.
3. Disclose competency issues in the written report and
   Identify the steps taken to satisfy the appraiser’s lack of knowledge.

Question 21

When an appraiser is working on an existing assignment and determines he cannot complete the assignment competently, the appraiser must ______________________

Answer 21

cease work and inform the client of that determination.

Question 22

An appraiser must be_________ and exercise due care while performing valuation services for clients to ensure the assignment results are credible.

Answer 22

Sufficiently diligent

Question 23

In developing an appraisal, a valuer must:

Answer 23

1. understand methods and techniques necessary to produce credible results.
2. Not commit a substantial error of omission that significantly affects the results
3. Not make a series of errors that, considered individually, may not significantly affect the assignment results but which, when considered in aggregate establish that the appraisal is rendered in a careless or negligent manner.

Question 24

Who decides the strategy to solve a particular valuation problem for the client?

Answer 24

The appraiser

Question 25

This strategy decision is what step in the valuation process and it is called_____________

Answer 25

step 2 Scope of work

Question 26

The Competency Rule is USPAP requires an appraiser to use_____________.

Answer 26

diligence and due care. (which does not require perfection and is impossible to attain.

Question 27

Before an appraiser accepts an assignment, he identifies the problem to be solved. There are 6 elements connected to problem identification. What are they?

Answer 27

1. Identify the client 2. Identify the intended use 3. Identify the type and definition of value (purpose of assignment) 4. Identify the effective date of the valuer's opinions and conclusions 5. Identify the subject of the assignment and it relevant characteristics. 6. Identify assignment conditions.

Question 28

The type and extent of research and analyses in an appraisal or appraisal review assignment (USPAP DEFINITION)

Answer 28

Scope of work

Question 29

An overall strategy for solving your client's valuation problem.

Answer 29

Scope of work

Question 30

___________will guide the appraiser in deciding the extent to which the subject property is inspected.

Answer 30

The scope of work decision in Step 2 of the Valuation process.

Question 31

The scope of work decision is an ___________the appraiser undertakes in the process to solve the client's problem.

Answer 31

exercise in judgment

Question 32

Appraisers must develop and communicate their work in a manner that is meaningful and ____________ their services to intended users.

Answer 32

that does not misrepresent

Question 33

An appraiser must not advocate the cause or interest of any

Answer 33

party or issue

Question 34

At what point must an appraiser be competent regarding an appraisal assignment?

Answer 34

At completion of the assignment

Question 35

The appraiser must be prepared to demonstrate that the type and extent of research and analyses performed in the appraisal is sufficient to produce_______ assignment results.

Answer 35

Credible

Question 36

An appraiser performing an assignment in an unfamiliar geographic location must spend sufficient time to understand the _________ of the local market.

Answer 36

nuances

Question 37

True of False | A series of errors in an appraisal is acceptable as long as it does not significantly affect the value conclusion.

Answer 37

False

Question 38

True of False An appraiser must inform a client prior to accepting the assignment if he lacks the requisite training, information,, and or work experience to complete the assignment competently.

Answer 38

True

Question 39

In an assignment that involves a dispute between two parties, it is the appraiser's duty to represent his client's position. True or False

Answer 39

False

Question 40

During the course of an appraisal, you discover a complexity that is beyound your ability and experience, What should you do?

Answer 40

Inform the client and explain how you will become competent. ????? Module 1 topic Ethical Practice

Question 41

An appraiser must be competent in_______ to produce a credible appraisal.

Answer 41

All the competencies that are necessary

Question 42

One minor error carries the same weight as a large error in the eyes of the appraisal standards.

Answer 42

False

Question 43

Making a series of small error in an appraisal is acceptable so long as it does not significantly affect the value conclusion. True or False

Answer 43

False

Question 44

The manner in which a client utilizes the information and opinions contained in the appraisal report may be best identified as

Answer 44

The intended use

Question 45

The purpose of the assignment is also referred to as_______-

Answer 45

Type and definition of value

Question 46

Which of the following is one of the assignment elements that an appraiser must identify prior to acceptance?

Answer 46

assignment conditions

Question 47

An appraiser has the ------ to support the scope of work decision and the level of information included in a report.

Answer 47

burden of proof