CGA Appraisal Report Writing & Communication 2

Question 1

A 'hypothetical condition' in an appraisal report is defined as a condition that:

Accepted Answer

Is known to be contrary to existing fact but is assumed for purposes of analysis

Answer

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.

Question 2

In appraisal reporting, 'reconciliation' refers to:

Accepted Answer

Weighing the results of different valuation approaches to arrive at a final value opinion

Answer

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.

Question 3

Which element is NOT required in a USPAP-compliant appraisal report?

Accepted Answer

The client's Social Security Number or tax ID

Answer

USPAP mandates effective date, appraiser credentials, and a signed certification, but does not require the client's personal tax identification information.

Question 4

The 'effective date' of an appraisal is best described as:

Accepted Answer

The specific date to which the value opinion applies

Answer

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.

Question 5

When an appraiser signs a report as a 'supervisory appraiser,' they are:

Accepted Answer

Accepting responsibility for the work performed by a trainee under their supervision

Answer

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.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA Appraisal Report Writing & Communication 2