SAEE Valuation Reporting Requirements 2 — Questions and Answers
Question 1: A complete appraisal report must always include which of the following?
- The effective date of the value opinion (Correct answer)
- The appraiser's personal income
- The lender's loan portfolio size
- The borrower's credit score
Correct answer: The effective date of the value opinion
The effective date establishes the point in time to which the value opinion applies and is a mandatory disclosure.
Question 2: Which report option provides the most comprehensive level of detail under reporting standards?
- Restricted appraisal report
- Appraisal report (Correct answer)
- Oral report
- Update letter
Correct answer: Appraisal report
An appraisal report contains more detail and supporting analysis than a restricted appraisal report.
Question 3: A restricted appraisal report is appropriate when:
- There is only one identified intended user (Correct answer)
- The property is residential
- The lender requests it for underwriting many parties
- The value exceeds a set threshold
Correct answer: There is only one identified intended user
Restricted reports are limited to a single client/intended user because the supporting detail is kept in the workfile.
Question 4: The intended use of an appraisal report should be:
- Left to the reader's interpretation
- Clearly stated by the appraiser (Correct answer)
- Decided by the borrower
- Omitted to protect privacy
Correct answer: Clearly stated by the appraiser
The appraiser must identify and state the intended use to frame the scope of work appropriately.
Question 5: Which item must be retained in the workfile even if it is not fully detailed in a restricted report?
- The marketing budget
- The supporting analysis and data (Correct answer)
- The buyer's agent commission
- The title insurance binder
Correct answer: The supporting analysis and data
Restricted reports keep the supporting analysis in the workfile so the conclusions can be documented if needed.
Question 6: A signed certification in an appraisal report primarily attests that:
- The value will not change
- The appraiser performed the work without bias (Correct answer)
- The lender approved the loan
- The market will rise
Correct answer: The appraiser performed the work without bias
The certification affirms impartiality, no predetermined result, and compliance with applicable standards.
Question 7: When an appraisal report references prior services on the same property, the appraiser must:
- Conceal the prior work
- Disclose the prior service to the client (Correct answer)
- Refuse the new assignment automatically
- Charge double the fee
Correct answer: Disclose the prior service to the client
Disclosure of prior services on the same property is required to maintain transparency and independence.
SAEE Valuation Reporting Requirements 2
A complete appraisal report must always include which of the following?