Question 1

The appraiser may exclude any irrelevant value approach without mentioning it in so many words.

Accepted Answer

An appraiser must not only consider all relevant approaches to value but also must document and explain the exclusion of any approach in the appraisal report, ensuring transparency and thoroughness in the valuation process.

Question 2

The narrative appraisal report is the most formal format.

Accepted Answer

The narrative appraisal report is the most formal format for real estate appraisal reports. It provides a detailed written description and analysis of the property being appraised, including its condition, location, and value. This format is typically used for complex appraisals or for properties with high value or unique characteristics.

Question 3

An appraisal may be reported with either a Self-Contained, Summary, or Restricted Use appraisal report.

Accepted Answer

An appraisal may be reported with either a Self-Contained, Summary, or Restricted Use appraisal report as per the Uniform Standards of Professional Appraisal Practice (USPAP).

Question 4

Agencies of FIRREA are exempt from USPAP.

Accepted Answer

Agencies of FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act of 1989) are not exempt from USPAP (Uniform Standards of Professional Appraisal Practice); they must adhere to these standards for real estate appraisals.

Question 5

Letter reports are well adapted to the Restricted Use Appraisal Report.

Accepted Answer

Letter reports, which are shorter and less detailed than narrative reports, are appropriate for Restricted Use Appraisal Reports since they provide a summary of the appraiser's findings and conclusions in a concise and easy-to-understand format.

Question 6

When properly prepared, the Uniform Residential Appraisal Report is acceptable for federally-related appraisals.

Accepted Answer

According to the Uniform Standards of Professional Appraisal Practice (USPAP), the Uniform Residential Appraisal Report (URAR) is an acceptable form for federally-related appraisals, as long as it has been prepared in compliance with USPAP and other applicable laws and regulations.

Question 7

All state licensed and certified appraisers must conform to USPAP regardless of the appraisal assignment.

Accepted Answer

USPAP (Uniform Standards of Professional Appraisal Practice) is a set of guidelines and standards that all state-licensed and certified appraisers must adhere to, regardless of the type of appraisal assignment they undertake. Failure to comply with USPAP can result in disciplinary action by state regulatory authorities.

Question 8

A single-family appraisal report should include a sales history of the subject property, with details of any known sales transaction that occurred within the three years prior to the date of value.

Accepted Answer

A sales history is an important part of a single-family appraisal report and should include details of any known sales transaction that occurred within the three years prior to the date of value. This helps to provide context for the current market conditions and the value of the property.

Question 9

Under FIRREA, not every appraisal for a federally related transaction must comply with USPAP.

Accepted Answer

Not all appraisals for federally related transactions are required to comply with USPAP; some may be exempt based on specific criteria outlined in FIRREA.

Question 10

The form and general content of appraisal reports should be agreed on in advance between the appraiser and the client.

Accepted Answer

It is important for the appraiser and client to have a discussion and agreement on the format and content of the appraisal report to ensure that it meets the client's needs and expectations.

Deck 16: Reporting Appraisal Opinions