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Real Estate Appraisal: Chapter 3 The Appraisal Process

Terms in this set (40)

A: Seven. One to research the light bulb comparables, 1 to verify the data, 1 to review USPAP and select the right approach/technique, 2 to write the report, 1 to review the report and 1 to deliver the report.

A: More than Four. Mega Watts hired 4 trainees to provide unbiased and defensible support for her final conclusion. She gave each trainee a copy of USPAP and took them to the hardware store and pointed out the various types of light bulbs they might encounter in the field. She then took the trainees into an actual building and demonstrated how to locate a light bulb receptacle. Either there is a power outage in San Diego currently or the trainees mistakenly attempted to screw in the light bulb counter-clockwise because they are all still there standing in the dark.

A: One. Appraiser #1 is cool, calm and collected. When she spots the Bat-Signal, Appraiser #1 goes to work. She understands the value of the Principle of "Righty Tighty Lefty Loosy" and knows how to comply with USPAP and keep those reviewer appraisers at bay. Experience tells her what light bulb approach to use. Whether it's Cost, Sales, or Income... she has a job to do. She uses an LED light bulb to save energy consumption and this assignment calls for the super green Bulborama Turbo Life Millennia Bulb ... and she knows how to use it.

A: None The investor's "opportunity" property has seen its better days (about 20 years ago) ... but it could be just the miracle flip. But is it worth the list price? She makes a quick call to Mr. A. The 6' 10" super hero parks his Shelby on the street and strides into the house where the front door used to be. He quietly (but confidently) does a quick survey of the property reaching for his 1600 LM CREE 6-LED Flashlight hanging from his leather work belt. Entering the hallway, Mr. A reaches up to the ceiling and lightly pushes open the entrance to the attic. (There's no need for a ladder when you are 6'10" tall). The powerful beam from the 1600 LM CREE 6-LED flashlight combined with Mr. A's incredible intelligence and stellar professional background reveal the answer to the problem. There is no need for a light bulb because there isn't any electrical wiring in the house! Mr. A has seen this before - the house was stripped for copper wiring by vandals while it sat vacant. The "No Trespassing" sign on the front boarded up window was not a deterrent for these thieves! Mr. A was called to the rescue and solved the problem - you can't turn the lights on even if you screw in the bulb! Ms. Investor, awed by the heroic Mr. A, can now make an informed decision on her flip property - walk away or go back to negotiate a lower list price.

A: 101 One to change the light bulb and 100 others to evaluate the reasons for changing the light bulb, whether it is the highest and best use to change the bulb, did the appraiser utilize appropriate light bulb changing techniques, did the appraiser comply with ethical standards, and whether or not the appraiser should be referred to the State Light Bulb Board for license revocation.

Some appraisers have been likened to Dalmatians (e.g., 101 Dalmatians. It seems that some appraisers and dalmatians have a doggone spotty past!

What do YOU think?
Light up your imagination with a humorous STORYLINE that reflects the 8 Step Appraisal Process!

Numerous studies have shown that HUMOR creates an optimal environment for learning.

Instructor's Best Answer (with a Humorous Storyline):


After stopping at Starbucks for a Green Tea Latte to stimulate his 8-Step Appraisal Process critical thinking skills, Appraiser Buck Deerwood arrives at the subject property located at 11 Wigwam Trail. It is an overcast, cloudy day and Buck found the interior of the subject teepee was too simply too dark to take properly exposed photos. The owner stated that installation of any and all utility lines within the subject Indian reservation was expressly prohibited, so there was no available electrical wiring. Fortunately however, the owner had borrowed a gas-powered light generator from the reservation elder, but the light bulb was found to be broken. The owner asks Appraiser Buck if he is able to change the light bulb.
Buck replies that changing a light bulb is beyond the Scope of Work of an appraisal assignment and advises that an appraiser simply reports whether a fixed lighting source is present and functional. The owner or intended user must hire a light bulb installer after a state licensed contractor first determines the proper wattage.
The resourceful owner then saves the day by gathering some fireflies in a jar and hanging them from the top of the teepee to illuminate the interior for the appraiser's photos.