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
Why this is correct: USPAP prohibits accepting an assignment condition that would preclude credible results. If omitting the neighborhood analysis would make the results not credible, the appraiser must not agree to the limitation or must decline the assignment, as explained originally. Why the other choices are wrong: "Do the abbreviated version and note the client's request" is incorrect because noting the request does not cure the lack of credibility. "Proceed, but add an extraordinary assumption about the neighborhood" is wrong; an assumption cannot substitute for required analysis. "Proceed, and charge separately for the omitted section" is false; charging separately does not resolve the credibility issue. Exam tip: Credibility is the non-negotiable floor; client requests cannot justify a scope that falls below it.
Why This Is the Correct Answer
Why this is correct: USPAP prohibits accepting an assignment condition that would preclude credible results. If omitting the neighborhood analysis would make the results not credible, the appraiser must not agree to the limitation or must decline the assignment, as explained originally. Why the other choices are wrong: "Do the abbreviated version and note the client's request" is incorrect because noting the request does not cure the lack of credibility. "Proceed, but add an extraordinary assumption about the neighborhood" is wrong; an assumption cannot substitute for required analysis. "Proceed, and charge separately for the omitted section" is false; charging separately does not resolve the credibility issue. Exam tip: Credibility is the non-negotiable floor; client requests cannot justify a scope that falls below it.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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