Deck 3: The Formal Appraisal Process

Question 1

The type of appraisal report used, (Self-Contained, Summary, or Restricted Use) should be decided upon in advance between the appraiser and the client.

Answer 1

True

Question 2

The typical appraisal assignment is to appraise the "fee simple" ownership.

Answer 2

True

Question 3

In simple terms, market value essentially means the most probable sales price in an open market.

Answer 3

True

Question 4

Written appraisals usually consist of a letter, a printed form, or a narrative report.

Question 5

The cost approach is normally given more weight in the appraisal of old and substantially obsolete buildings.

Question 6

Income and commercial properties are most often appraised by emphasizing the income approach to value.

Question 7

In the sales comparison approach, the appraiser adjusts comparable sales by adding or subtracting amounts from their sale price to "improve" their comparability.

Question 8

Well-prepared Restricted Use Appraisal Reports are considered to be less reliable than Self-Contained Appraisal Reports.

Question 9

Value in use is an objective kind of value that means the value to people in general.

Question 10

If you are a state licensed or certified appraiser, in most states your appraisals must always conform to USPAP.