Basic Appraisal Procedures Mckissock Study Guide with Complete Solutions Latest Updated 2023/2024 advisory opinion-22 - Correct Answer understanding whihc analysis methods and techniques are necessary and what data are necessary to correctly complete the analysis is an integral part of the scope of work decision Advisory opinions-22 os USPAP - Correct Answer Accomplishing the first four action steps (SR 1-2(a) through (d))... ...provides the basis for deciding which of the property's characteristics are relevant in the assignment allocation - Correct Answer land to value ratios based on improved sales comparables allocation method - Correct Answer estimating land value in which sales of improved properties are analyzed to establish a typical ratio of land value to total property value and this ratio is applied to the property being appraised or the comparable sale being analyzed applicable approaches to value - Correct Answer cost, sales comp, income and capitalization appraoches Appraisal Process - Correct Answer 1. Define Problem
- Determine scope of work
- Gather Record & verify dat
- determine highest and best use
- estimate land value
- est. value by all three approaches
- Reconcile est. value into final opinion value
- report the final opinion
Appraisers are cautioned to - Correct Answer identify the exact definition of market value and its authority applicable in each appraisal completed for the purpose of market value Arm's-length transaction - Correct Answer transaction between unrelated parties who are each acting in his or her own best interest brownfield - Correct Answer real property for which the expansion redevelopment of the real estate may be complicated by the presence of environmental contamination that needs to be remediated to standards buydowns - Correct Answer lump-sum payment to the lender that reduces the interest payments of the borrower 1 / 2
capitalization rate(R) - Correct Answer ratio of one year's net operating income provided by an asset to the value of the asset common sources of specific data: - Correct Answer deeds, location maps, tax maps, flood maps, assessors records, title companies, zoning, MLS concurrent ownership - Correct Answer Ownership by two or more persons at the same time Conditions of sale - Correct Answer element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transactio Contract rent - Correct Answer The actual rental income specified in a lease conventional loans - Correct Answer mortgage neither insured nor guaranteed by an agency although it may be privately insured cost approach - Correct Answer set of procedures through which a value indication is derived for the fee simple estate by estimating the current cost to construct a reproduction of the existing structure cost formula - Correct Answer reproduction cost new-accrued depreciation+site value=property value Curable depreciation - Correct Answer Items of physical deterioration or functional obsolescence that are economically feasible to cure deed will provide - Correct Answer The legal description of the property The owners of record Easements of record Deed restrictions Chain of title Deficit rent - Correct Answer amount by which market rent exceeds contract rent at the time of the appraisal defining problem - Correct Answer Identification and location of the real estate Identification of the property rights Definition of value Purpose and intended use of the appraisal Effective date of the opinion of value Any special limiting conditions Depreciation - Correct Answer appraising, a loss in property value from any cause
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