Podcast
Questions and Answers
What would indicate that an appraisal is not credible by professional standards?
What would indicate that an appraisal is not credible by professional standards?
- Critical data have been omitted (correct)
- The final value estimate is not as high as the client wanted
- The range value does not guarantee the true value will fall within that range
- The property later sells for more than the appraiser’s opinion of value
When an appraiser expresses the estimate of a property’s value as $375,000, what is this referred to as?
When an appraiser expresses the estimate of a property’s value as $375,000, what is this referred to as?
- Certain value
- Point estimate (correct)
- Broad estimate
- Range value
What does a range value that is too broad imply?
What does a range value that is too broad imply?
- It can safely guarantee that the true value is within the range
- It is so vague that the estimate is useless
- It implies a level of certainty that isn’t warranted (correct)
- It conveys too much information to the client
What is the purpose of using multiple value indicators in an appraisal?
What is the purpose of using multiple value indicators in an appraisal?
Why is it important for an appraiser to verify the accuracy of original data?
Why is it important for an appraiser to verify the accuracy of original data?
What is the main dependence of the techniques chosen for an appraisal problem?
What is the main dependence of the techniques chosen for an appraisal problem?
What should an appraiser check for during the appraisal process?
What should an appraiser check for during the appraisal process?
Which of the following inaccurately reflects an appraisal's reliability?
Which of the following inaccurately reflects an appraisal's reliability?
Which approach is most appropriate for appraising single-family residences?
Which approach is most appropriate for appraising single-family residences?
Which aspect is crucial to maintain credibility in appraisals?
Which aspect is crucial to maintain credibility in appraisals?
What is a point estimate in appraisal terminology?
What is a point estimate in appraisal terminology?
What characterizes the reconciliation process in appraisal?
What characterizes the reconciliation process in appraisal?
Why is an appraisal with omitted critical data considered unreliable?
Why is an appraisal with omitted critical data considered unreliable?
How does the amount of supporting data affect the reliability of a value indicator?
How does the amount of supporting data affect the reliability of a value indicator?
What is a consequence of having a broad range value in an appraisal?
What is a consequence of having a broad range value in an appraisal?
How should an appraiser determine the number of significant digits in a value estimation?
How should an appraiser determine the number of significant digits in a value estimation?
What is the primary focus for an appraiser to ensure the accuracy of original data?
What is the primary focus for an appraiser to ensure the accuracy of original data?
What method is an appraiser likely to use when appraising a single-family residence?
What method is an appraiser likely to use when appraising a single-family residence?
Which factor is least likely to affect the relevance of an appraisal technique?
Which factor is least likely to affect the relevance of an appraisal technique?
What is primarily considered when deciding on the reliability of the chosen appraisal approach?
What is primarily considered when deciding on the reliability of the chosen appraisal approach?
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Study Notes
Reconciliation
- Reconciliation is a subjective process that relies on the appraiser's judgment rather than a mathematical formula.
Appraisal Techniques
- When appraising single-family residences, the sales comparison approach is the preferred method.
Data Verification
- Appraisers should verify data using the most reliable source available to ensure accuracy.
Value Indicators
- The number of value indicators used to assess the value of a property influences the reliability of the estimate.
- A value indicator supported by more data is generally regarded as more credible.
Appraisal Types
- The specific appraisal techniques used depend on the property's type.
Final Value Estimate
- A point estimate is a single dollar amount that represents the appraiser's final assessment of a property's value.
- A range value can sometimes be too broad and ineffective due to a lack of specificity.
- An appraiser should choose the number of significant digits in their estimate based on confidence levels in the accuracy of the value.
- A lower level of confidence might necessitate the use of fewer significant digits.
Credibility
- An appraisal lacking critical data fails to meet professional standards and is considered unreliable.
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