1.0 Valuation Procedure and Appraisal Report Writing

The sales data description of the appraisal report contain the ___

• Zoning details

• Details about each comparable sale

• Investigation of market forces

• Analysis of the date for value approaches

How is appraisal fee determined?

• Stipulated or subsequent events and complexity

• Time required to complete the appraisal assignment and the complexity thereof

• Time required to forecast the appraisal report and the complexity

• Contingent event of the appraisal assignment and its complexity

What method/ approach is used to estimate the value of the land by estimating first the value of the improvement as per Sec 210 of the LGC, and the value of improvement is deducted from the sale price to derive the land value?

• Cost Approach

• Abstraction Method

• Market Data Approach

• Allocation Method

Why is a statement of limiting conditions necessary in an appraisal report? Because it ____

• is required in the appraisal or valuation standard

• notifies the client on the items subject to which the appraisal is made

• is necessary in the appraisal report about the assignment

• is important as provided in the standard reporting requirement

What is purpose of qualifying statement and the limiting condition(s)? It protects the _____

• client and other users of the appraisal report

• real estate appraiser and to inform and protect the client and other users of the appraisal report

• real estate appraiser in consideration of a valid appraisal report

• real estate appraiser in the appraisal assignment

What should the appraiser do in case that in the preparation of the appraisal report, his/her analysis found out that one of the approaches used is not applicable in the engagement?

• State in the report that the approach is not applicable and explain his/her reason

• Just state in the report that the approach is not relevant

• Use hypothetical data to make the approach applicable

• Do not include the approach in the report

The final value obtained and presented by the appraiser in his report is the result of the _________.

• weighing of the indicated values based on the data gathered, using the three (3) value approaches

• average of the three (3) value approaches

• honest assessment of facts

• careful study of incidents

The following are the methods of presenting the appraisal information in a written format EXCEPT

• Memo Report

• Narrative Report

• Form Report

• Letter Report

Which refers to an appraisal report in letter form with the Appraiser's opinion of value, supporting data, analysis and interpretation preserved in files?

• Oral report

• Standard form

• Narrative report

• Certificate form

What are the three (3) major division of an appraisal report?

• Introduction, Conclusion and Addenda

• Introduction, Description Analysis and Conclusion

• Introduction, Description Analysis and Conclusion and Addenda

• Description Analysis and Conclusion and Addenda