Question 1

State and federal laws generally require a license or certificate to perform certain federally related appraisals.

Accepted Answer

State and federal laws require a license or certificate to perform certain federally related appraisals, such as for federally insured loans.

Question 2

As a general term, value means the worth, usefulness, or utility of an object.

Accepted Answer

The definition of value includes the concepts of worth, usefulness, or utility.

Question 3

Areas of public control requiring appraisals include eminent domain and taxation.

Accepted Answer

Eminent domain and taxation are areas where appraisals are required for determining the value of the property or assets being acquired for public use or for assessing the tax liabilities of individuals or corporations.

Question 4

The only market transactions requiring appraisals are the purchase and sale of real estate.

Accepted Answer

Appraisals may also be required for other types of assets, such as art, collectibles, jewelry, and business assets.

Question 5

An appraisal is simply a statement of value.

Accepted Answer

An appraisal is a detailed analysis and evaluation to determine the value of an asset, often including considerations of its condition, market value, and other factors, not just a simple statement of value.

Question 6

A court order can require an appraiser to reveal the results of an appraisal made in confidence.

Accepted Answer

A court order can require an appraiser to reveal the results of an appraisal made in confidence.

Question 7

Informal appraisals are performed by most people in real estate.

Accepted Answer

Informal appraisals, also known as Comparative Market Analyses (CMAs), are commonly performed by real estate professionals and even some individuals involved in buying and selling properties. These appraisals rely on market research and analysis to estimate the value of a property, but they are not considered as formal or official as a professional appraisal by a licensed appraiser.

Question 8

Formal appraisals rely on supporting data, but no judgment or intuition is needed.

Accepted Answer

Formal appraisals do rely on supporting data, but they also require the judgment and intuition of the appraiser. They must evaluate the data and form an opinion on the value or quality being appraised.

Question 9

Appraisals are needed to provide unbiased opinions of value that can be reviewed.

Accepted Answer

Appraisals are typically conducted by certified or licensed professionals who provide an unbiased opinion of value that can be used by buyers, sellers, lenders, and other interested parties to make informed decisions. These appraisals may be reviewed by other professionals or parties involved in the transaction to ensure accuracy and fairness.

Question 10

USPAP imposes both ethical obligations and minimum appraisal standards.

Accepted Answer

USPAP (Uniform Standards of Professional Appraisal Practice) includes both ethical obligations and minimum appraisal standards that must be followed by all professional appraisers in the United States. This ensures a consistent and ethical approach to appraising and protects both the appraiser and the public.

Deck 1: Real Estate Appraisal and You