Appraisal Report Writing & Communication Flashcards
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Read the first 7 Appraisal Report Writing & Communication flashcards as text
A 'hypothetical condition' in an appraisal report is defined as a condition that:
Answer: Is known to be contrary to existing fact but is assumed for purposes of analysis
A hypothetical condition is one that is known to be contrary to what exists (e.g., appraising a vacant lot as if improved) and is used for a specific analytical purpose such as an 'as completed' valuation.
In appraisal reporting, 'reconciliation' refers to:
Answer: Weighing the results of different valuation approaches to arrive at a final value opinion
Reconciliation is the analytical step where the appraiser evaluates and weights the indications from each approach to value to develop a single, supported final value conclusion.
Which element is NOT required in a USPAP-compliant appraisal report?
Answer: The client's Social Security Number or tax ID
USPAP mandates effective date, appraiser credentials, and a signed certification, but does not require the client's personal tax identification information.
The 'effective date' of an appraisal is best described as:
Answer: The specific date to which the value opinion applies
The effective date is the specific date to which the value conclusion pertains; it may be current, retrospective, or prospective and differs from the report date.
When an appraiser signs a report as a 'supervisory appraiser,' they are:
Answer: Accepting responsibility for the work performed by a trainee under their supervision
A supervisory appraiser accepts full responsibility for the work of a trainee working under their supervision, even if the supervisory appraiser did not personally complete every aspect.
Which of the following best describes the 'intended use' element required in an appraisal report?
Answer: The reason the client or intended users need the appraisal
Intended use describes how the client and intended users plan to use the appraisal—for example, mortgage underwriting, estate settlement, or eminent domain litigation.
Per USPAP, an appraiser must retain the workfile for an assignment for a minimum of:
Answer: 5 years after preparation, or 2 years after final disposition of judicial proceedings, whichever is longer
USPAP's Record Keeping Rule requires retention of the workfile for at least five years after preparation, or at least two years after the final disposition of any judicial proceeding in which the appraiser provided testimony, whichever is longer.