12 Ch10 Questionable Property Characteristics Case Study quiz Flashcards
When solving complex appraisal problems in real life, an appraiser is likely to come to the conclusion that
There are no nice, neat conclusions or right answers
When inspecting a property, an appraiser is forbidden by the property owner from inspecting the interior of the basement. The appraiser completes the appraisal, and values the property on the basis that the condition of the basement and foundation are consistent with the rest of the home, and there are no needed repairs or structural deficiencies. The report states that if this were found to be false, it would affect the appraised value. This is an example of
An extraordinary assumption
Problems often encountered by an appraiser when completing an appraisal with an exterior-only inspection of the subject property include
Clients pay lower fees because they think the appraisal is easier
How can a new appraiser prepare for the challenges posed by complex appraisal assignments?
Learning to think in a different or creative way
When an appraiser uses an extraordinary assumption in an appraisal, her reporting requirements include
Disclosure that the use of the extraordinary assumption may have affected the appraiser’s conclusions
An extraordinary assumption is something that is
Assumed to be true
Something that is believed to be true, directly related to a specific assignment, which could affect the appraiser’s opinions and conclusions if it were found to be false is
An extraordinary assumption
Appraising a property without the benefit of an interior inspection is ___________ considered a complex appraisal assignment.
Not always
An appraiser values a property at $150,000, based on an extraordinary assumption that the property was free of environmental contamination. This extraordinary assumption was appropriately disclosed in the report. Later, he discovers that the assumption was incorrect, and there is significant contamination. Which statement is TRUE about this situation?
The appraiser did not violate USPAP, and is not required to revise the report
When an exterior only inspection is made, acceptable alternative sources for physical characteristics and condition of a property may include
MLS data, Prior appraisal reports prepared by others, County assessment records
A lesser level of inspection of the subject property results in a ____________complex assignment.
More
An appraiser’s interior walk-through inspection of a home is considered to be a “complete” inspection, and is technically exhaustive.
FALSE
When disclosing the use of an extraordinary assumption in an appraisal report
The appraiser has discretion as to how this disclosure is worded
