Appraisal Concepts Chapter 12 Quiz

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Questions and Answers

What is the primary reason lenders and government agencies often require form reports?

A standard form allows them to find information quickly. (correct)

Form reports do not need to be certified by appraisers.

Form reports require less time from appraisers.

They prefer detailed narrative reports over forms.

Which type of appraisal report is most commonly required?

Letter report

Restricted use appraisal report

Uniform Residential Appraisal Report (correct)

Descriptive appraisal report

In the sales comparison approach section of the URAR, how is the grid structured?

One column for the subject property and two for each comparable.

One column for the subject property and all comparables together.

One column for the subject property and one for each comparable. (correct)

Two columns for the subject property and two for each comparable.

What must be included with a restricted appraisal report to clarify its conclusions?

An appendix containing the appraiser's detailed assessment. Signup and view all the answers

The total room count on the Uniform Residential Appraisal Report typically considers which of the following?

All rooms in the house. Signup and view all the answers

What must accompany the Uniform Residential Appraisal Report (URAR) to meet professional standards?

A letter of transmittal Signup and view all the answers

In a sales comparison approach report, what type of information is typically included about the subject property?

The sales history of the property Signup and view all the answers

Which statement is true about the revised URAR form's usage?

It may only report appraisals for one-unit properties. Signup and view all the answers

What is a primary characteristic of form reports in the appraisal process?

They ensure specific information is provided but limit tailoring. Signup and view all the answers

What must a supervisory appraiser do in relation to the Uniform Residential Appraisal Report?

Sign the report's certification Signup and view all the answers

In the context of the sales comparison approach, what is indicated in the second column for each comparable?

Adjustments Signup and view all the answers

What is a key limitation of using form reports in the appraisal process?

They restrict personalization for appraisal situations. Signup and view all the answers

Which form may be used to report an appraisal of a manufactured home?

Both the URAR form and a separate certification form Signup and view all the answers

Which types of properties can the Uniform Residential Appraisal Report (URAR) form be used for?

Any of the above Signup and view all the answers

What is the most complete type of written report an appraiser should produce?

Appraisal report Signup and view all the answers

When must an appraisal report utilize a re-approach?

When the income approach is used Signup and view all the answers

What is necessary to include when providing a restricted appraisal report?

A prominent warning about limitations Signup and view all the answers

What must be disclosed as part of the appraisal report?

All assumptions and conditions Signup and view all the answers

What is a recommended practice for room counting in appraisals?

Consistent counting based on local customs Signup and view all the answers

What determines the extent of analysis required for an appraisal?

The reporting option chosen Signup and view all the answers

Study Notes

Chapter 12 Quiz - Key Concepts

Disclosing Assumptions: All assumptions and conditions involved in the appraisal must be disclosed in the report.
Appraisal Analysis Scope: The extent of an appraiser's analysis depends on the scope of the appraisal problem, not the report format or writing style.
Report Types: Appraisal reports are the most comprehensive, providing detailed analysis. Summary reports provide a condensed overview. Descriptive reports offer a more descriptive detail. Restricted reports are limited in scope and require specific warnings.
Required Appraisal Report Components: The report must include the client's identity, rationale for highest and best use analysis, and a defined value methodology.
Restricted Appraisal Reports: These reports require warnings stating that conclusions are incomplete without the supporting workfile. They can be used by others than the client but need accompanying materials.
Letter of Transmittal: This must accompany or be part of the appraisal report, including the appraiser's certification.
Narratives & Sales History: Sales history, relevant to the subject property, belongs within the Narrative report. Sections should clearly define terms and contain pertinent data.
Form Reports: These reports are standardized, making it more difficult to tailor to the specific appraisal problem. Usable for efficiency but lack the detail for customized responses. They should follow USPAP standards and include a certification.
Uniform Residential Appraisal Report (URAR): This report is a standard form, commonly used by lenders.
URAR Room Counts: For reporting, room counts consider bedrooms, bathrooms, and all rooms, especially those on the ground floor. Local customs may apply.
Sales Comparison Approach Grids: The sales comparison approach grids employ one row for the subject property and separate columns for each comparable property.
URAR Supervisory Appraiser: The supervisory appraiser (if applicable) must sign and certify on the URAR form.
URAR Reporting Types: It can be used for evaluating one-unit properties, including manufactured homes and condominiums.

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Description

Test your understanding of key appraisal concepts as detailed in Chapter 12. This quiz covers essential topics such as report types, required components, and the importance of disclosing assumptions in appraisal reports. Assess your knowledge to ensure you grasp the critical elements of the appraisal process.