A client engages an appraiser to evaluate the quality of another appraiser's report. Standard 3 governs:
Correct Answer
B) The development of an appraisal review
Why this is correct: Standard 3 governs the development of an appraisal review, which is the act or process of developing an opinion about the quality of another appraiser's work. The review itself must be developed competently and credibly. Why the other choices are wrong: 'The reporting of a mass appraisal' is wrong because that is governed by Standard 6. 'The valuation of personal property and related assets' is wrong because that is governed by Standards 7 and 8. 'The retention period for workfiles' is wrong because that is governed by the Record Keeping Rule, not a Standard. Exam tip: Standard 3 = Development of a review. Standard 4 = Reporting of a review.
Why This Is the Correct Answer
Why this is correct: Standard 3 governs the development of an appraisal review, which is the act or process of developing an opinion about the quality of another appraiser's work. The review itself must be developed competently and credibly. Why the other choices are wrong: 'The reporting of a mass appraisal' is wrong because that is governed by Standard 6. 'The valuation of personal property and related assets' is wrong because that is governed by Standards 7 and 8. 'The retention period for workfiles' is wrong because that is governed by the Record Keeping Rule, not a Standard. Exam tip: Standard 3 = Development of a review. Standard 4 = Reporting of a review.
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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