PSI Real Estate Appraisal 3

Question 1

The Uniform Standards of Professional Appraisal Practice (USPAP) are developed and interpreted by:

Accepted Answer

The Appraisal Standards Board of The Appraisal Foundation

Answer

USPAP is promulgated by the Appraisal Standards Board (ASB) of The Appraisal Foundation, a congressionally authorized organization that sets appraisal standards and qualifications.

Question 2

Under USPAP, the appraisal report option that provides the most detail and documentation is the:

Accepted Answer

Self-contained appraisal report

Answer

A self-contained (complete) appraisal report presents all information and analysis in full detail, making it the most comprehensive USPAP-compliant reporting option.

Question 3

Appraiser independence requirements under federal law prohibit:

Accepted Answer

A mortgage lender's loan production staff from selecting or pressuring appraisers

Answer

Appraiser independence rules (established under the Dodd-Frank Act and Interagency Appraisal Guidelines) prohibit loan production staff from selecting, retaining, recommending, or influencing appraisers to protect appraisal objectivity.

Question 4

In an appraisal report, reconciliation refers to the process of:

Accepted Answer

Weighing the reliability of each approach to value and arriving at a final value opinion

Answer

Reconciliation is the appraiser's judgment process of analyzing the results from all applicable approaches and weighting them based on their reliability to arrive at a single final value opinion.

Question 5

Assemblage in real estate refers to the process of:

Accepted Answer

Combining two or more adjacent parcels under single ownership to create greater utility

Answer

Assemblage is the combining of two or more adjacent parcels into one larger holding, often resulting in plottage value — the incremental increase in value created by the combination.

PSI - Exams Practice Test

PSI - Exams Practice Test

PSI Real Estate Appraisal 3