Residential Report Writing and Case Studies Flashcards
(229 cards)
1
Q
Kristin develops an opinion of value, prepares it in a written format, and mails it to her client. What has she mailed to the client?
A
A report
2
Q
In the development of an appraisal on a two-unit residential property, Jared completes the income approach. Which statement is TRUE regarding his reporting obligations?
A
He must report the results of the income approach.
3
Q
There is no difference between the meanings of the terms appraisal and appraisal report.
A
False
4
Q
In the development of a real property appraisal, the value opinion must be:
A
Credible
5
Q
In the reporting of a real property appraisal, it is important that the report is NOT:
A
Misleading & Fraudulent
6
Q
Eve is appraising a single-family home for a mortgage loan. Where should she go for information regarding what form or format to use in her appraisal report?
A
The client/intended users
7
Q
A retrospective appraisal involves an effective date that is___________.
A
Some time in the past
8
Q
Once the scope of work decision has been made by the appraiser, it cannot later be modified.
A
False
9
Q
What may happen if the client provides the appraiser with incorrect or incomplete property information?
A
A non-credible value opinion may result
10
Q
Most residential appraisers use the unit-in-place method of estimating cost new.
A
False
11
Q
Highest and best use analysis is mandatory in all real property appraisal assignments.
A
False
12
Q
A garage building has an effective age of 5 years and a total economic life of 25 years. What is the percentage of accrued depreciation by the age-life method?
A
20%
13
Q
Written appraisal reports must contain sufficient information so that _______ can properly understand them.
A
Intended users
14
Q
Reconciliation is the process of averaging the indications of the approaches to value into a final value indication.
A
False
15
Q
What is the final step in the overall appraisal process?
A
Reporting the appraisal
16
Q
“Intended to deceive” is the definition of:
A
Fraudulent
17
Q
Earl is appraising a parcel of real property for a mortgage loan. What is the best source to obtain the information he needs for problem identification?
A
The client
18
Q
Most mortgage lending appraisal assignments require an opinion of ______ value.
A
Market
19
Q
What type of income approach is typically used for small residential properties?
A
Gross rent multiplier
20
Q
STANDARD __ covers real property appraisal development, and STANDARD __ covers real property appraisal reporting.
A
1, 2
21
Q
In the development of an appraisal on a two-unit residential property, Jared completes the income approach. Which statement is TRUE regarding his reporting obligations?
A
He must report the results of the income approach.
22
Q
The appraisal development process:
A
Is an intellectual process
23
Q
The income approach is based on the principle of ________.
A
Anticipation
24
Q
The terms appraisal and report:
A
Are not synonymous
25
The second step in the appraisal process was formerly called preliminary survey. What is this step now called?
Determine scope of work
26
Eve is appraising a single-family home for a mortgage loan. Where should she go for information regarding what form or format to use in her appraisal report?
The client/intended users
27
A home has an outdated kitchen, which can be remedied at a cost of $10,000. After the kitchen is updated, the value of the home will increase from $124,000 to $133,000. What type of depreciation is this?
Functional, incurable, Outdated fixtures and cabinetry, and poor floor plans are examples of functional obsolescence. The cost to cure ($10,000) is more than the resulting increase in value ($9,000) so this depreciation is considered incurable. (Ch 1, Cost Approach: Depreciation)
28
Which of these is NOT one of the criteria for highest and best use?
Socially acceptable
29
The same amount of information must appear in every written appraisal report.
False
30
Sandy is appraising an income property for a very knowledgeable client. Which statement is TRUE regarding how much information Sandy must insert in her appraisal report?
Because the client is knowledgeable, Sandy may put less information in the report.
31
USPAP STANDARD 2 establishes ________ requirements for real property appraisal reports.
Minimum
32
What distinguishes an extraordinary assumption from an “ordinary” assumption?
An extraordinary assumption is directly related to a specific assignment. While an “ordinary” assumption may be made in virtually every appraisal assignment, an extraordinary assumption is directly related to a specific assignment.
33
An appraiser’s assumption that the subject property has clear and marketable title is an example of:
Assumption
34
Kate notes an underground storage tank on a property she is appraising. The property owner gives her a copy of an environmental expert’s report stating that the tank had leaked diesel fuel into the ground, and there was significant contamination which was never remediated. In appraising this property, can Kate employ an extraordinary assumption that the property is free of contamination?
No, If we have a reasonable basis for an extraordinary assumption, we may utilize it in the appraisal process. In this case, Kate does not have a basis for this assumption, because she knows it is false. (Ch 2, Extraordinary Assumptions)
35
If a property is appraised contrary to known fact, this would be a(n) _________.
Hypothetical condition, A hypothetical condition is something that is contrary to what is known by the appraiser to exist on the effective date of the assignment results.
36
An appraiser may use another label in place of the report option label required by USPAP Standards Rule 2-2.
False
37
In a written real property appraisal report, USPAP requires that a statement of the reporting option must be ___________.
Prominent
38
Ricky has been asked to appraise a property for an out-of-state client, who has very little knowledge of the property. The intended use would necessitate a high level of information in the report; however, since there are no other intended users, Ricky wonders if he should use a Restricted Report format. What does USPAP state about this situation?
A Restricted Report is not permissible because the client and intended use would dictate a higher level of content and detail
39
Brett prepares a written report labeled “Appraisal Report;” however, the level of information is not consistent with the requirements of such a report. He sends the report to his client. Which statement is TRUE regarding this situation?
He has violated USPAP by communicating a misleading report.
40
As part of an appraisal assignment, Kara has completed a subject property sales history and current listing and agreement analysis. In her Restricted Appraisal Report, she must _________ this information.
Summarize
41
What are the operative words that establish the differences between the two USPAP written report options?
Summarize, state
42
In a written real property appraisal report, USPAP requires that a statement of the reporting option must be ___________.
Prominent
43
An appraisal report must be written so that _____ can understand it.
the client and intended users
44
As part of an appraisal assignment, Kara has completed a subject property sales history and current listing and agreement analysis. In her Restricted Appraisal Report, she must _________ this information.
Summarize
45
Irving is appraising a proposed new home, based on plans and specifications. He is appraising the property as though the new home has been completed as of a current effective date; however, it is actually a vacant lot. This is an example of:
A hypothetical condition
46
What is the role of Advisory Opinion 11 with regard to appraisal reporting?
Provides guidance and advice
47
The form or format of an appraisal report:
Is not dictated by USPAP
48
USPAP STANDARD 2 establishes ________ requirements for real property appraisal reports.
Minimum
49
Sandy is appraising an income property for a very knowledgeable client. Which statement is TRUE regarding how much information Sandy must insert in her appraisal report?
Because the client is knowledgeable, Sandy may put less information in the report.
50
Under USPAP, disclosure of extraordinary assumptions and hypothetical conditions must be clear and ___________ .
conspicuous
51
An appraiser's lender-client asks the appraiser to use the Fannie Mae URAR form to report his appraisal. This client is essentially asking for a:
Appraisal Report
52
Zoe is asked to provide an oral appraisal report. What is the USPAP requirement for oral reports?
To the extent possible and appropriate, oral appraisal reports must meet the requirements for an Appraisal Report.
53
Barb is reporting an appraisal of a single-family home, using a URAR form. What is the BEST way to ensure that her report meets the requirements for an Appraisal Report?
Meet the minimum content requirements set forth in USPAP
54
Jeremy is asked to complete an appraisal by a mysterious client, who will not tell him exactly why he wants to have the property appraised. Does USPAP permit Jeremy to accept the assignment in this situation?
No
55
An appraiser is engaged by an appraisal management company (AMC) who is acting as an agent of the lender. The AMC requests that the appraiser put the lender's name on the appraisal report as the client. Which statement is TRUE about this situation?
The lender is the client.
56
Lola completes an appraisal for a property owner, and sends him the report. Two weeks later, the property owner calls and asks Lola to add ABC Bank onto the appraisal report as an intended user. What are Lola’s obligations under USPAP?
She is not permitted to retroactively add intended users.
57
An appraiser may base a value opinion on special, non-market financing terms.
True
58
In appraisals for federally-regulated lending institutions, the source of the market value definition commonly used by appraisers is:
FIRREA
59
What is an acceptable format for communicating an Appraisal Report?
Fannie Mae 1004 form, Fannie Narrative format Mae 2055 form
60
An appraiser is preparing a retrospective appraisal. Which statement is TRUE regarding the effective date?
It will be prior to the date of report.
61
For an appraisal for a Fannie Mae lender, the effective date of the appraisal is the date the property was inspected.
True, Fannie Mae and Freddie Mac require that the effective date must be the date that the property was inspected.
62
Which statement is TRUE regarding disclosure of scope of work in an Appraisal Report?
It may consist of small summaries located in various places throughout the report, It must be summarized and It may include disclosure of both work that was done, and work that was not done.
63
The certification statement used in a written real property appraisal report must be used exactly word-for-word as it appears in USPAP Standards Rule 2-3.
False, The certification used must be similar in content to USPAP; it does not have to be word-for-word. (Ch 3, SR 2-2 a xi)
64
Howard appraised a property for a very secretive client, who instructed him not to disclose to anyone that he had appraised the property. Twenty-seven months later, Howard receives an appraisal request from another client. What are Howard’s USPAP obligations?
He must decline the assignment. If the prior client had instructed the appraiser not to even disclose the mere occurrence of the assignment, the appraiser must decline all assignment requests on the subject property for the duration of the three-year disclosure period. (Ch 3, SR 2-2 a xi)
65
In a Restricted Appraisal Report on a single-family residence, the exclusion of the income approach __________.
Must be explained, Regardless of the report type, the exclusion of the sales comparison, cost, or income approach must be explained.
66
In an Appraisal Report, the appraiser's opinion of highest and best use must be __________.
Summarized
67
If an appraisal report indicates three comparable sales adjusted to indicate $210,000, $220,000 and $230,000, the appraiser is not required to explain why he or she reconciled the value indication at $220,000.
False
68
In a Restricted Appraisal Report on a single-family residence, the exclusion of the income approach __________.
Must be explained
69
An appraiser is preparing an appraisal with an effective date of July 3rd. The report is dated July 5th. This would most likely be a ____________.
Current appraisal
70
Which term BEST describes the Fannie Mae 1004 (URAR) form?
A container for a report
71
Which report option specified in USPAP is the most detailed?
Appraisal Report
72
Jeremy is asked to complete an appraisal by a mysterious client, who will not tell him exactly why he wants to have the property appraised. Does USPAP permit Jeremy to accept the assignment in this situation?
No
73
An appraiser is required to state _____ dates in every Appraisal Report.
two
74
Brenda prepares an Appraisal Report, in which she states, word-for-word, the market value definition she is using. What other USPAP reporting requirements (if any) does she have regarding her definition of value?
She must cite the source of the definition.
75
James is appraising a proposed new home, and he believes the cost approach is necessary for credible results. However, the URAR form states the cost approach is not required. What should he do?
Complete the cost approach
76
Fannie Mae and Freddie Mac are responsible for creating most of the commonly-used residential appraisal report forms.
True
77
What is a reason why residential appraisers are often “form-focused”?
Forms have been standardized by Fannie Mae and Freddie Mac
78
Secondary market appraisal guidelines are intended to take the place of USPAP.
False
79
For real property appraisal reports, USPAP compliance is determined by:
Content
80
The most requested residential appraisal report is the:
URAR report
81
The Fannie Mae 1004 form may be used to report an appraisal on:
Units in planned unit developments
82
Fannie Mae's pre-printed scope of work in the URAR form requires an appraiser to:
Perform a complete visual inspection of the interior and exterior of the subject property, Inspect the neighborhood and Inspect the comparable sales from the street
83
HUD/FHA and VA have adopted the 1004 (URAR) appraisal report form.
True
84
By fully filling out the URAR form, an appraiser has met his or her USPAP requirements for reporting.
False
85
There have been 45 sales in the subject neighborhood within the last 9 months. There are 35 properties currently listed for sale on the market. How many months' inventory is currently on the market?
7
86
The requirement to research prior listings of the subject within the last 12 months is a(n):
Fannie Mae/Freddie Mac requirement
87
Generally speaking, Fannie Mae and Freddie Mac will not purchase a mortgage on a property that is an illegal use.
True
88
A rectangular property measures 800' x 900'. How would the site size be reported on the URAR form?
16.53 ac
89
In a Fannie Mae appraisal, which FEMA zones would be considered special flood hazard areas?
Zones A and V
90
An appraiser may not add limiting conditions to the URAR form, but is permitted to add additional certifications.
True, Appraisers are not permitted to add any additional assumptions or limiting conditions. Additions (such as those required by the individual state or by an appraisal association, for their designated members) are acceptable and are allowed as additional certifications
91
At the top of page 2 of the URAR form, which listings and sales should be considered and reported?
Only properties that are comparable to the subject property
92
USPAP sets forth guidelines establishing how recent and proximate comparable sales must be.
False
93
James is appraising a proposed new home, and he believes the cost approach is necessary for credible results. However, the URAR form states the cost approach is not required. What should he do?
Complete the cost approach
94
What is another name for a legal non-conforming use?
Grandfathered use
95
Each of the report options outlined in Standards Rule 2-2 (a) and (b) has ___ numbered minimum content requirement items.
12
96
Jamal receives an appraisal assignment from a lending institution. What should NOT be a consideration for Jamal when he determines the scope of work for the appraisal development process?
The report form the client has requested
97
What is the primary reason for analyzing sales history of the subject and comparable sales?
Determine that flipping actions have not occurred, The purpose of this research is to ensure that illegal “flipping” actions have not occurred with either the subject or the comparable sales used in the sales comparison approach. This research can be an indication of market trends, but that is not its primary purpose
98
When appraising a single-family home, an appraiser decides not to develop the income approach. What is the appraiser's requirement for reporting this on the URAR form?
Explain the reason the approach was not developed
99
The URAR form has been identified by the ASB as generally meeting the reporting requirements for a(an):
Appraisal Report
100
Ty receives a single-family appraisal request from a small local bank which does not sell loans on the secondary mortgage market. Which appraisal reporting format is this client most likely to request?
A form created by Fannie Mae
101
USPAP sets forth guidelines establishing how recent and proximate comparable sales must be.
False
102
Special flood hazard areas, as identified by FEMA, include:
Zones A and V
103
What is a reason why residential appraisers are often “form-focused”?
Forms have been standardized by Fannie Mae and Freddie Mac
104
In a Fannie Mae appraisal, which FEMA zones would be considered special flood hazard areas?
Zones A and V
105
Which party is ultimately responsible for compliance with Fannie Mae and Freddie Mac policies and initiatives?
The lender
106
Which statement is FALSE regarding Fannie Mae?
It is currently a federal government agency.
107
The appraisal data requirements of the UAD apply to which type of loans?
Conventional, FHA and VA
108
Appraisals reported on which Fannie Mae forms will require compliance with the requirements of the Uniform Appraisal Dataset?
1004, 2055, 1073, 1075
109
As part of the implementation of the Uniform Appraisal Dataset (UAD), Fannie Mae and Freddie Mac changed the layout and format of several appraisal report forms.
False, While the appraisal forms themselves were not changed as part of the UAD, the GSEs did change some of the input requirements for the form fields.
110
The Uniform Appraisal Dataset changed _________.
Input requirements for certain fields on appraisal report forms
111
"The appraiser should enter a neighborhood name" is an example of:
An instruction
112
"The appraiser must enter all applicable homeowners' association (HOA) fees associated with the subject property" is an example of:
A requirement
113
Which of these statements is TRUE regarding GSE requirements and USPAP?
GSEs require USPAP compliance.
114
Marian is appraising a single-family home where the property tax year spans 2019 and 2020. In her UAD report, what should she put under "Tax Year"?
2019
115
Tom is appraising a single-family home with an accessory unit. The home is occupied by the property owner, and the accessory unit is vacant. Under "Occupant" on the 1004 form, Tom must:
Check the "Owner" box
116
Under the requirements for UAD, if an appraiser determines that property values in the neighborhood are "stable to increasing", she may check both the "stable" and "increasing" boxes in the neighborhood section of the URAR form.
False
117
The UAD requires an appraiser to rate the subject property's overall view as:
N, B, or A
118
If a home has three full bathrooms and two half-bathrooms above grade, how must the appraiser indicate the bathroom count according to the UAD?
3.2
119
In an appraisal report prepared under the UAD, how is a three-quarter bathroom to be considered in the room count?
As a full bathroom
120
A comparable property closed (settled) on June 5, 2020. Under the requirements of UAD, what would be the appropriate format to enter the settlement date in the sales comparison grid?
06/20
121
As per the UAD, what information is required to be inserted in the "Name" field, in the "LENDER/CLIENT" section on page 6 of the 1004 form?
The AMC name, if applicable
122
The subject property has a two-car attached garage. Comp 1 also has a two-car attached garage. What should the appraiser enter in the sales comparison grid in the adjustment field for this item?
The field should be left blank
123
"Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/or expansion" is the definition of __________.
Remodeled
124
"The area of the home has been modified to meet current market expectations. These modifications are limited in terms of both scope and cost" is the definition of __________.
Updated,
125
An appraiser estimates that the subject home was built in 1930, but is unable to verify this. How must the appraiser indicate this in the "Year Built" section of the 1004 form?
~1930
126
As per the UAD, what information is required to be inserted in the "Name" field, in the "LENDER/CLIENT" section on page 6 of the 1004 form?
The AMC name, if applicable
127
Which of these would be the MOST appropriate entry in the location section of the sales comparison grid in a UAD-compliant appraisal report?
A; BsyRd
128
Dave is appraising a single-family home in a Planned Unit Development (PUD). The HOA fees are assessed quarterly. What does Dave need to do in order to fill out the HOA fields?
Convert the fee to either monthly or annual amount
129
If the Assignment Type is indicated as a purchase transaction, the appraiser is required to report on sales concessions or financial assistance.
True
130
If Fannie Mae receives an appraisal report that they believe to be fraudulent, what are they MOST likely to do?
Refer the matter to the appropriate state enforcement agency
131
The UAD requires an appraiser to rate the subject property's overall view as:
N, B, or A
132
Which of these is a valid architectural style, under the UAD?
Rambler
133
If an appraiser enters improperly formatted data into a required field on the URAR form, what will happen?
An error message will be generated
134
Which is NOT an acceptable way to outline the subject's neighborhood boundaries in a UAD-compliant appraisal report?
By referencing a map in an addendum, he appraiser should provide outlined neighborhood boundaries, using "North", "South", "East", and "West." Boundaries can include streets, waterways, municipal limits, or other natural boundaries. Appraisers should not reference a map or other addendum as the only example of neighborhood boundaries
135
Which of these is a valid architectural style, according to the requirements of the UAD?
Farmhouse
136
12 of 15 Which statement is FALSE regarding Fannie Mae?
It is currently a federal government agency.
137
Which of these is an acceptable way to report site size under the requirements of the UAD?
4.25 ac
138
Which document would be MOST helpful for an appraiser in understanding the requirements of the Uniform Appraisal Dataset (UAD)?
UAD Appendix D
139
According to the UAD, view descriptors such as "None", "Average", or "Typical" are unacceptable.
True, View descriptions must be specific and understandable; descriptors such as "None", "N/A", "Typical", or "Average" are not acceptable. (Neutral, Beneficial, or Adverse).
140
The level of detail required by the 2055 form is generally consistent with the minimum content requirements of a(n) ___________.
Appraisal Report
141
For an exterior-only inspection appraisal for Fannie Mae, an appraiser must perform an exterior inspection of the property, from at least the street.
True
142
Fannie Mae last revised their forms in
2005
143
Fannie Mae requires which approach(es) to value in the appraisal of a HUD-Code manufactured home?
Sales comparison and cost approaches only, In addition to completing the sales comparison approach to value, the cost approach is required by Fannie Mae and Freddie Mac as part of the appraisal process for all manufactured homes`
144
When appraising a new manufactured home, an appraiser is required to report the results of the analysis of the _________.
Manufacturer's invoice, On page 1, the form requires the appraiser to report the results of the analysis of the manufacturer's invoice, if the manufactured home is new construction
145
The Manufactured Home Appraisal Report, according to Fannie Mae, is consistent with the minimum content requirements for a(an) _________ report.
Appraisal
146
When appraising a manufactured home, an appraiser needs to look for the __________ to verify that the home was constructed in accordance with federal standards.
HUD Label
147
Nikki is appraising a modular home for a Fannie Mae lender. What form should she use to report her appraisal?
1004
148
When appraising a new manufactured home, an appraiser is required to report the results of the analysis of the _________.
Manufacturer's invoice
149
Units of comparison on the 1025 form would NOT include sale price per:
Bathroom
150
Why does the Individual Condominium Unit Appraisal Report require extensive information regarding the condominium project in which the subject unit is located?
Because common elements and amenities are essential to the value of a condominium unit
151
Units of comparison on the 1025 form would NOT include sale price per:
Parking space, Both unadjusted and adjusted units of comparison, including sale price per unit, sale price per room, sale price per bedroom, and sale price per square foot of gross building area, are extracted from the comparable sales. (Ch 6, Small Residential Income Property Appraisal Report)
152
When an individual purchases a unit in a cooperative project, what is he or she actually purchasing?
Stock in a corporation
153
How does Fannie Mae require that cooperative units be valued?
Sales comparison approach
154
A recertification of value does not change the effective date of the original appraisal.
True
155
The form 1004MC addendum is no longer required for 1-4-family residential appraisals for Fannie Mae, Freddie Mac, and VA loans.
True
156
The 1004MC form is best described as:
An addendum to an appraisal report
157
The Manufactured Home Appraisal Report, according to Fannie Mae, is consistent with the minimum content requirements for a(an) _________ report.
Appraisal
158
An appraiser completes an appraisal on a property. One year later, the appraiser is asked by the client to tell the client whether the value of the property has remained the same. Under USPAP, this assignment is ________.
An appraisal
159
How does Fannie Mae require that cooperative units be valued?
Sales comparison approach
160
The level of detail required by the 2055 form is generally consistent with the minimum content requirements of a (an)___________.
Appraisal Report
161
The Form 1004MC addendum is no longer required for 1-4-family residential appraisals for Fannie Mae, Freddie Mac, and VA loans.
True
162
The gross living area of a ______________ unit is calculated using interior measurements.
Condominium
163
Why is it necessary for an appraiser to disclose the sources for the physical characteristics of the subject property in a report of an exterior-only inspection appraisal?
To enable intended users to understand the appraisal process, To facilitate intended users' understanding of the appraisal process, the appraiser is required to identify the data source(s) used to obtain this information in the report.
164
An inspection made for the purpose of ensuring that repairs have been completed in accordance with a prior appraisal is ____________.
A recertification of value
165
For an exterior-only inspection appraisal for Fannie Mae, an appraiser must perform an exterior inspection of the property ___________________ .
from at least the street.
166
Which statement is TRUE regarding gross living area (GLA) in an exterior-only inspection appraisal for Fannie Mae?
The appraiser must identify the data source for the GLA information in the appraisal report.
167
Manufactured home appraisals are required to be reported on Fannie Mae form _________.
1004C
168
The workfile for a Restricted Appraisal Report must contain sufficient information to produce an Appraisal Report.
True
169
A narrative appraisal report can be used to comply with the minimum content requirements of a Restricted Appraisal Report.
True
170
Which statement is FALSE regarding a narrative appraisal report?
A narrative report is always lengthy
171
When disclosing the use of a hypothetical condition in a report, an appraiser must also include a statement that its use might have affected the assignment results.
True
172
In a narrative appraisal report, it is considered a best practice to include a letter of transmittal.
True
173
Which of these is a USPAP requirement?
The appraisal report must contain sufficient information to enable the intended users of the appraisal to understand the report properly
174
Residential appraisers who primarily use form reports are usually not accustomed to discussing assumptions and limiting conditions with their clients.
True
175
Which statement is true regarding general assumptions and limiting conditions?
Many appraisers attach them to the appraisal contract and require client acknowledgment before beginning the assignment. They are usually included in the addendum to the report. They limit or restrict the appraiser's responsibilities.
176
`In an appraisal report, it is not necessary to explain the meanings of acronyms such as USPAP because an intended user of an appraisal should already have a basic knowledge and understanding of appraisal terminology and USPAP.
False
177
A productive way to start writing a narrative appraisal is to include an “Appraisal Summary” or “Summary of Salient Facts.” What should such a summary include?
Many of the USPAP-required items that can simply be stated
178
A signed certification is an integral part of an appraisal report.
True
179
Why is the title page important in a narrative appraisal report?
Because it is your opportunity to make a positive first impression
180
Who determines the form, format, and style of an appraisal report?
The appraiser and the intended user
181
Which statement is true regarding general assumptions and limiting conditions?
Many appraisers attach them to the appraisal contract and require client acknowledgment before beginning the assignment. They are usually included in the addendum to the report. They limit or restrict the appraiser's responsibilities.
182
In addition to the level of detail, what is the difference between an Appraisal Report and a Restricted Appraisal Report?
A Restricted report is only appropriate in situations where there is one intended user
183
What is the best way to explain the appraiser's highest and best use analysis in an Appraisal Report?
By separately explaining and describing each of the four test criteria
184
Residential appraisers who primarily use form reports are usually not accustomed to discussing assumptions and limiting conditions with their clients.
True, Residential appraisers who primarily use form reports may not be accustomed to discussing assumptions and limiting conditions with the client, because when a client requests an appraisal be reported on the 1004 form, he or she is essentially agreeing to the pre-printed assumptions and limiting conditions that are specified on the form.
185
A productive way to start writing a narrative appraisal report is to include an “Appraisal Summary” or “Summary of Salient Facts.” What should such a summary include?
Many of the USPAP-required items that can simply be stated
186
If, in developing your appraisal, you excluded something you believe an intended user may be concerned about, what should you do?
Explain in the report why you did not include or address an item of such potential concern
187
After you finish writing a narrative report, it is a good idea to set it aside for a day or two and then read it to ensure that it can be properly understood by intended users.
True
188
When writing a narrative appraisal report, how might an appraiser utilize an appraisal report form?
As a rough guide to ensure that all pertinent information is included
189
In a narrative appraisal report, general assumptions and limiting conditions are typically:
Included in an addendum
190
What does a well-written appraisal report do for the client?
Instill confidence that the appraiser has properly and professionally performed the steps necessary to produce a credible opinion of value
191
If, in developing your appraisal, you excluded something you believe an intended user may be concerned about, what should you do?
Explain in the report why you did not include or address an item of such potential concern
192
What are the four sections into which some appraisal organizations recommend separating a narrative appraisal report?
Introduction, appraisal problem and scope of work, presentation of the data, analysis and conclusion
193
Which of the following is ALWAYS an intended user of an appraisal report?
The client
194
What is the idea behind the SCOPE OF WORK RULE?
Give appraisers the flexibility to treat each assignment differently
195
Before an appraiser can determine an appropriate scope of work, he or she must first __________.
Identify the problem
196
Why is proper disclosure of scope of work required by USPAP?
Because clients and intended users rely on the assignment results
197
All interior inspections for real property appraisals should be completed in the same manner.
False
198
If you and your client have an understanding that you are making an interior inspection of the subject property:
There is still a need to disclose the extent of the inspection in the report
199
What does Fannie Mae require, as a minimum, for an exterior-only inspection?
The appraiser must view the exterior of the property from at least the street
200
Eric develops an appraisal without making any inspection of the subject property. What are his disclosure obligations?
He must disclose in the report certification that he did not make an inspection of the subject property
201
What is the usual reason that lender clients request “desktop” appraisals?
To save time and/or money
202
Irving is asked to complete a “drive-by” (exterior-only inspection) appraisal on a single-family home in a rural area for a Fannie Mae lender. When he drives out to the property, he realizes that it cannot be seen from the road. Which statement is TRUE regarding this situation?
He must be able to view the property in order to perform a “drive-by” appraisal.
203
If an appraiser receives significant real property appraisal assistance in an assignment, but does not disclose it in the report:
He has provided a misleading report
204
A tightening of underwriting standards in residential mortgage lending has led to clients asking for more information in appraisal reports than ever before.
True
205
Boilerplate statements regarding the selection and weighting of comparable sales is a "best practice" for residential appraisers.
False
206
The current URAR form should NOT be used to report appraisals for non-mortgage lending intended uses.
True
207
Assignment conditions would NOT include:
The appraisal fee
208
A state passes a law requiring appraisers to keep their appraisal workfiles for a minimum of 8 years. Is this a jurisdictional exception?
No, A law that requires appraisers to retain their appraisal workfiles for 8 years would not be a jurisdictional exception, because nothing in the law would preclude an appraiser from complying with the USPAP minimum requirement of 5 years. An appraiser could comply with both the law and USPAP by retaining his or her workfiles for 8 years. (Ch 8, Jurisdictional Exception)
209
The type and extent of an interior real property inspection will vary based on ____________ of the appraisal.
The intended use
210
Why is proper disclosure of scope of work required by USPAP?
Because clients and intended users rely on the assignment results
211
3 of 11 Fannie Mae and Freddie Mac require the appraiser to possess the required competency before accepting an appraisal assignment.
True
212
If Sara does an appraisal with an exterior-only inspection:
She must ensure that sufficient information is available about the interior to enable her to develop credible results
213
Which statement is TRUE regarding an inspection for an FHA appraisal?
It is more in-depth than the minimum inspection required by Fannie Mae
214
If an appraiser receives significant real property appraisal assistance in an assignment, but does not disclose it in the report:
He has provided a misleading report
215
If you and your client have an understanding that you are making an interior inspection of the subject property:
There is still a need to disclose the extent of the inspection in the report
216
The current URAR form should NOT be used to report appraisals for ___________ intended uses.
Non-mortgage lending
217
The SCOPE OF WORK RULE provides flexibility to the appraiser, but along with that flexibility comes ___________.
Responsibility
218
USPAP requires a positive statement of competency in every appraisal report.
False, USPAP establishes no such requirement, although certain clients or client groups may mandate such a statement
219
In the appraisal report, a disclosure clarifying the extent of the inspection can provide additional information to intended users, and may also ________________.
Limit the appraiser’s liability
220
What is the net adjustment for Comp 1?
+$14,200
221
What is the percentage of depreciation for the subject property?
25%
222
Which sale should receive the most weight in the reconciliation process?
Comp 2
223
What is the indicated value for the subject property by cost approach (round to the nearest $100)?
$199,100
224
A two-story building that contains 3 units measures 28 feet by 43 feet. Two of the units have 800 square feet of GLA each, and the other unit has 650 square feet of GLA. What is the GBA for this building?
2,408
225
A two-unit building measures 42 feet by 60 feet. There is an additional efficiency living unit in the basement, with 450 square feet. What is the GBA of this property?
2,970
226
A two-story building that contains 4 units measures 22 feet by 61 feet. Two of the units have 650 square feet of GLA each, and the other two units have 550 square feet of GLA each. What is the GBA for this building?
2,684
227
1 of 3 A purchaser of a single-family home is typically interested in _________ and a purchaser of a 2-4-family property is more interested in _________.
Amenities, income
228
A comparable property has 3 units. Each unit has 5 rooms and 2 bedrooms. The property has 2,880 square feet of GBA and sold for $212,000. What is the indicated sale price per unit?
$70,667
229
If a property has a gross monthly market rent of $1,750 and the indicated GRM is 88, what is the indicated value of the subject by income approach?
$154,000
