A client proposes a live video walkthrough instead of the appraiser’s attendance. What must govern acceptance of that method?
Correct Answer
D) Whether it gives enough reliable data and meets legal and assignment terms.
Assess the information the method can reliably supply for this property and intended use, including what it cannot reveal. Also comply with applicable law and governing client, lender or program requirements; credibility does not waive those constraints. The appraiser remains responsible for the scope decision and must accurately describe the work performed. A video is neither universally acceptable nor universally prohibited.
Why This Is the Correct Answer
Option D is correct because acceptance of a live video walkthrough depends on whether it yields enough reliable information for credible results and meets legal and assignment terms. USPAP requires the scope of work to include the research and analyses necessary for credible results. The appraiser must also comply with law and client or program requirements and accurately describe the work performed.
Why the Other Options Are Wrong
Option A: The client’s willingness to accept responsibility for any resulting errors.
Option A is wrong because the client's willingness to accept responsibility for errors does not govern the scope decision. The appraiser remains responsible for the scope of work and for credible results.
Option B: Whether the software vendor says the video equals an in-person inspection.
Option B is wrong because a software vendor saying the video equals an in-person inspection does not settle the question. The appraiser must judge what information the method can reliably supply for this property.
Option C: Whether the method is legal, without assessing the information obtained.
Option C is wrong because checking only whether the method is legal, without assessing the information obtained, ignores credibility. Legal compliance is necessary but does not show that the method provides enough reliable information.
Enough, legal, and on terms
A new inspection method must give enough reliable information, follow the law and meet the assignment's terms.
How to use: Use this when a question asks what governs acceptance of a remote or alternative inspection method.
Exam Tip
Choose the answer that combines information sufficiency with legal and assignment compliance. Answers relying on client or vendor assurances miss the appraiser's responsibility.
Common Mistakes to Avoid
- -Letting the client's acceptance of risk decide the scope
- -Relying on a vendor's claim of equivalence
- -Checking legality without assessing information quality
Concept Deep Dive
Analysis
This question tests how an appraiser decides whether an alternative inspection method is acceptable. The method must yield enough reliable information for the property and intended use and must comply with applicable law and assignment terms. The appraiser, not the client or vendor, is responsible for that scope decision.
Background Knowledge
Remote inspection methods, such as live video, can supply some property information while missing details an onsite visit might reveal. USPAP's Scope of Work Rule requires the appraiser to perform the research and analyses needed for credible results and not let assignment conditions undermine credibility.
Real-World Application
A client proposes a video tour of an older home instead of an inspection. The appraiser considers that the video may not show foundation or attic condition, checks the lender's requirements, and decides whether the method provides enough reliable information before accepting.
More Emerging Methods Questions
A loan is eligible for Fannie Mae's value acceptance + property data option, and the lender elects that option. What does the lender obtain in place of an appraisal?
An appraiser uses a building-permit file to investigate an addition. What is an important limitation of that source?
A real estate salesperson, acting solely in a brokerage role, prepares a CMA to help a listing client choose an asking price. Which statement is best?
An appropriately credentialed appraiser is offered a desktop assignment on an unfamiliar property type. A necessary competency gap is known before agreement. If the appraiser elects to proceed, what is required?
How should an appraiser identify potentially distressed transactions in a data set?
Why should an appraiser identify the data sources used in the report?
How should an appraiser treat a value estimate found on a consumer real estate website?
An appraiser builds a spreadsheet regression to support adjustments. How is it treated?
May an appraiser use data from a prior assignment for a different client?
The intended lender’s applicable assignment conditions require an interior inspection. The client asks the appraiser to deliver a desktop appraisal instead, and the inspection condition has not been authorized for modification. What should the appraiser do?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam