Module 20 Vocab

Question 1

“The act or process of developing an opinion of value; an opinion of value” (USPAP, DEFINITIONS).

Answer 1

appraisal

Question 2

_____ is a property service “performed by an individual acting as an appraiser,” including the following:

a. Appraisal
b. Appraisal review (USPAP, DEFINITIONS)
c. Other services while acting an appraiser

Answer 2

appraisal practice

Appraisal practice is a subset of valuation services, and client expectations can be a deciding factor in what type of service the appraiser provides.

Other services while acting an appraiser may include:

• Providing sales data
• Trend analysis
• Zoning study
• Assessment study
• Teaching an appraisal course

Question 3

“The act or process of developing an opinion
about the quality of another appraiser’s work that was performed as part of an appraisal or ________ assignment” (USPAP, DEFINITIONS).

Answer 3

appraisal review

Question 4

“An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions” (USPAP, DEFINITIONS).

Answer 4

extraordinary assumption

Question 5

“A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis” (USPAP, DEFINITIONS).

Answer 5

hypothetical condition

Question 6

“The use(s) of an appraiser’s reported appraisal or
appraisal review assignment results, as identified by the appraiser based on communication with the client at the time of the assignment” (USPAP, DEFINITIONS).

Answer 6

intended use

Question 7

“The client and any other party as identified, by name
or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment” (USPAP, DEFINITIONS).

Answer 7

intended user

Question 8

The objective of an assignment—e.g., in an

appraisal assignment, to develop an opinion of the defined value of a specified interest in real estate.

Answer 8

purpose of an appraisal

Note: The term purpose used in the process of defining a client’s problem was edited in prior versions of USPAP to mean type and definition of value.

Question 9

“The type and extent of research and analyses in an

appraisal or appraisal review assignment” (USPAP, DEFINITIONS).

Answer 9

scope of work

Question 10

“Services pertaining to aspects of property value”

(USPAP, DEFINITIONS). They are performed by appraisers and others.

Answer 10

valuation services

These include:

a. Appraisal practice
b. Brokerage
c. Auctioning
d. Property management
e. Real property consulting
f. Advocate consulting
g. Collecting market data

Note: an appraiser has an obligation to not misrepresent his or her role when performing valuation services outside of appraisal practice