Modul 9 von 16 · Text
Chapter 9: The Appraisal Process
Appraisal
1) Purposes of an appraisal - ownership transfer, extension of credit.
2) Fee appraisers and other individuals with appropriate credentials or experience can complete form reports - widely used by financial institutions for residential mortgage financing value estimates.
3) Narrative reports tend to be lengthy.
4) A letter of opinion is best described as a brief estimate of value.
5) The effective date of an appraisal can differ from inspection date of an appraisal. Effective date is the date on which the appraisal applies.
- Step 1 -
- Establishing an appraisal plan (Preliminary inspection and planning the work).
- Data collection and Analysis.
6) The age cycle of a neighbourhood consists of 3 phases - growth, stability (time when area is built up and prices stabilize) and decline. The factors when analyzing a neighbourhood in relation to a single family home appraisal will differ from those for a retail or farm.
7) Site analysis involves assessing factors - locational, physical, legal/gov., economic.
8) Analysis of site improvements includes - improvements on the site and to the site.
9) Reconciliation is based on careful analysis and judgment, not only on math. Method of evaluating and selecting from 2 or more alternatives to arrive at a single estimate.
10) A comparative market analysis (CMA) is not an appraisal. It is a form to assist the seller in establishing a listing price.
11) The Residential Market Comparison Guide provides recommendations concerning - max list price and probable selling price.
12) Assessors use same approaches to estimate the value, but restricted.
13) The assessment notice doesn't include taxes. However municipality uses this assessment to calculate property taxes.
14) The appraisal report includes environmental conditions effect condition.
15) Stigmas involve perception.
16) Automated Valuation Model - a statistical method to establish value through computer.
17) MPAC - reconsiderations must be made through MPAC.