A client requests an oral value opinion by phone without a personal property inspection. Which statement best describes USPAP’s treatment of the request?
Correct Answer
D) It may be accepted only if the chosen scope produces credible results and oral-report/workfile duties are met
An oral value opinion is an appraisal report and remains subject to the applicable development, reporting and workfile obligations. A personal inspection is a scope choice rather than a universal USPAP requirement. Reliable information and competent analysis must still support credible results for the intended use.
Why This Is the Correct Answer
Option D is correct because an oral value opinion is an appraisal report and remains subject to the applicable development, reporting and workfile duties. A personal inspection is a scope choice rather than a universal USPAP requirement, so the request may be accepted if the scope of work produces credible results. The workfile for an oral report must be sufficient for the appraiser to produce an Appraisal Report.
Why the Other Options Are Wrong
Option A: It is automatically compliant whenever the client is a repeat customer
Option A says the request is automatically compliant whenever the client is a repeat customer. Client history does not determine compliance; credible results and the oral-report and workfile duties do.
Option B: The appraiser’s familiarity with the area alone makes the result credible
Option B says familiarity with the area alone makes the result credible. Area knowledge helps, but credible results also depend on reliable information about the subject and competent analysis.
Option C: Calling the missing inspection a hypothetical condition cures any data gap in the oral value opinion given
Option C says labeling the missing inspection a hypothetical condition cures any data gap. A hypothetical condition is a premise contrary to known fact, not a fix for missing information, and it does not replace the reliable data needed for credible results.
Oral still needs support
Spoken does not mean simplified: an oral report needs a credible scope and a workfile strong enough to write an Appraisal Report.
How to use: Use this reminder when a question involves an oral opinion or a phone request.
Exam Tip
Be cautious of options that claim one factor alone makes an assignment compliant or credible; look for the answer tied to scope of work and credible results.
Common Mistakes to Avoid
- -Thinking oral opinions are outside USPAP
- -Believing a personal inspection is required in every assignment
- -Using a hypothetical condition to paper over missing data
Concept Deep Dive
Analysis
This question tests USPAP's treatment of oral reports and inspection as a scope-of-work choice. An oral value opinion is still an appraisal report subject to development, reporting and workfile obligations. Skipping a personal inspection is acceptable only if the chosen scope still produces credible results.
Background Knowledge
USPAP permits oral appraisal reports and requires the workfile to support them at the level of an Appraisal Report. Whether to inspect the subject property is part of the scope of work, which must be sufficient to produce credible results for the intended use.
Real-World Application
An attorney calls asking for a quick verbal value on a tract home without an interior inspection. The appraiser accepts only after confirming that public records, MLS data and an exterior view will support a credible result, and she keeps a workfile sufficient to produce an Appraisal Report.
More USPAP Questions
Under USPAP, what are assignment results?
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Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
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Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
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According to USPAP, what is the primary purpose of the Ethics Rule?
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Which list gives the sections of the 2024 USPAP Ethics Rule?
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