A client asks the appraiser to skip the neighborhood analysis to cut the fee. If that omission would make the results not credible, the appraiser must:
Correct Answer
A) Not agree to the limitation — or decline the assignment
An assignment condition cannot restrict necessary analysis so far that results are not credible for their intended use. The appraiser should negotiate a sufficient scope or decline the assignment. Stating that the client requested an omission, changing the bill or assuming away an entire required analysis does not supply the missing support. A narrow but adequate scope is different from the explicitly inadequate omission described here.
Why This Is the Correct Answer
Option A is correct because USPAP states that an appraiser must not allow assignment conditions to limit the scope of work to such a degree that results are not credible for the intended use. Since the omission would make the results not credible, the appraiser must not agree to it. Negotiating a sufficient scope or declining are the acceptable responses.
Why the Other Options Are Wrong
Option B: Do the abbreviated version and note the client's request
Option B says to do the abbreviated version and note the client's request. Noting that the client asked for the omission does not supply the missing analysis, and the results would still not be credible.
Option C: Proceed, but add an extraordinary assumption about the neighborhood
Option C says to proceed with an extraordinary assumption about the neighborhood. An extraordinary assumption cannot replace an entire required analysis the appraiser chose not to perform.
Option D: Proceed, and charge separately for the omitted section
Option D says to proceed and charge separately for the omitted section. Changing the bill does nothing to fix the credibility problem created by skipping the analysis.
No credibility, no deal
If a client's limit would make results not credible, the limit cannot be accepted. Fix the scope or decline.
How to use: Use this when a stem says a requested limitation would make results not credible.
Exam Tip
When the stem itself says results would not be credible, eliminate any choice that proceeds with the limitation.
Common Mistakes to Avoid
- -Thinking a note about the client's request makes the omission acceptable
- -Using an extraordinary assumption to replace required analysis
- -Treating fee changes as a fix for inadequate scope
Concept Deep Dive
Analysis
This question tests the limit on assignment conditions under the Scope of Work Rule. The stem states that omitting the neighborhood analysis would make the results not credible, which settles the issue. The appraiser cannot accept a condition that produces non-credible results, so the answer is to refuse the limitation or decline.
Background Knowledge
The Scope of Work Rule allows the appraiser and client to tailor the work, but the scope must remain sufficient for credible results. A narrow but adequate scope is acceptable; a scope that produces non-credible results is not. The appraiser must be prepared to demonstrate that the scope was sufficient.
Real-World Application
A homeowner wants a lower fee and asks the appraiser to skip the neighborhood and market analysis. The appraiser explains that the analysis is needed to support the value in that changing market. The appraiser offers a scope that includes it, and declines if the client refuses.
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