RAA Residential Appraisal Report Writing 2

Question 1

In the 'Site' section of the URAR, the appraiser must note the property's zoning classification. If a legal nonconforming use exists, which of the following best describes the appraiser's obligation?

Accepted Answer

Disclose the nonconforming status and analyze its effect on marketability and value

Answer

Report only the current use and ignore the nonconforming status

Answer

Decline to appraise the property until zoning is brought into conformance

Answer

Report the zoning as conforming since the use predates current regulations

Question 2

When an appraiser reports physical characteristics of the improvements in the 'Improvements' section of Form 1004, which of the following measurements is typically required for the gross living area (GLA)?

Accepted Answer

Exterior measured above-grade finished living area only

Answer

Interior measured square footage of all rooms including garage and basement

Answer

Interior measured area of above-grade conditioned spaces only

Answer

Total lot coverage including all attached structures

Question 3

A client asks an appraiser to provide a value conclusion 'as of' a date that is three years in the past. According to USPAP, what is this type of appraisal called?

Accepted Answer

Retrospective appraisal

Answer

Prospective appraisal

Answer

Hypothetical appraisal

Answer

Limited scope appraisal

Question 4

Which of the following best describes the purpose of the 'Appraiser's Certification' section found in the URAR (Form 1004)?

Accepted Answer

It certifies the appraiser's compliance with USPAP and independence requirements

Answer

It certifies the property is free of environmental hazards

Answer

It certifies the lender has reviewed and approved the appraisal

Answer

It certifies that the borrower has received a copy of the appraisal

Question 5

When completing the 'Sales Comparison Approach' grid on Form 1004, what does a negative adjustment to a comparable sale indicate?

Accepted Answer

The subject property is inferior to the comparable in that feature

Answer

The comparable is inferior to the subject in that feature

Answer

The feature has no contributory value in the market

Answer

The adjustment reduces the appraiser's confidence in the comparable

Question 6

In an appraisal report, what is a 'hypothetical condition' as defined by USPAP?

Accepted Answer

A condition that is contrary to what is known to exist on the effective date of the appraisal

Answer

An assumption about uncertain information that is believed to be true

Answer

A forecast of market conditions expected in the future

Answer

A condition approved by the client before the assignment begins

Question 7

When must an appraiser include an 'Intended Use' statement in an appraisal report?

Accepted Answer

In every appraisal report, as required by USPAP

Answer

Only when the report will be used in a court of law

Answer

Only when the report is provided to a federally regulated lender

Answer

Only for properties valued above $1,000,000