CRPA Relocation Appraisal Methodology & Terminology 4

Question 1

What is the purpose of the 'marketing strategy' section in an ERC-compliant relocation appraisal?

Accepted Answer

To provide the relocation company with pricing and exposure guidance to achieve the anticipated selling price

Answer

The marketing strategy section guides the relocation company and transferee on recommended list price, timing, and conditions to achieve the forecasted selling price.

Question 2

In the context of relocation appraisals, 'external obsolescence' (also called economic obsolescence) is caused by:

Accepted Answer

Factors outside the property boundaries, such as proximity to a newly built highway

Answer

External obsolescence stems from negative influences outside the property, such as traffic, noise, proximity to industrial uses, or broader economic decline.

Question 3

A relocation appraiser must complete a 'restricted use appraisal report' for an equity buyout. Which of the following is TRUE about this report type?

Accepted Answer

It may only be used by the client named in the report and cannot be understood without the workfile

Answer

A restricted use (now 'restricted appraisal report' under USPAP 2020-21) is limited to the named client and lacks the detail for any other user to understand the analysis without the workfile.

Question 4

When a relocation appraiser inspects a property and finds it has an unpermitted addition, the most appropriate response is to:

Accepted Answer

Note the unpermitted status, assess market reaction, and reflect any negative impact in value

Answer

Unpermitted additions must be disclosed and any market value impact — typically negative due to lender and buyer concerns — must be reflected in the appraisal.

Question 5

Which of the following best describes the 'highest and best use' analysis required in a relocation appraisal?

Accepted Answer

The reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive

Answer

Highest and best use must satisfy all four criteria: legal permissibility, physical possibility, financial feasibility, and maximum productivity.

(CRPA) Certified Relocation Professional Appraiser Practice Test

(CRPA) Certified Relocation Professional Appraiser Practice Test

CRPA Relocation Appraisal Methodology & Terminology 4