A lender asks for an exterior-only 'drive-by' appraisal. This request is:
Correct Answer
D) Acceptable if that scope still yields credible results for the intended use
Why this is correct: USPAP does not mandate a specific type of inspection. The key test is whether the selected scope of work (e.g., exterior-only) will yield credible results for the intended use. The appraiser must make this judgment, disclose the scope, and report any limitations. Why the other choices are wrong: Interior inspection is not always mandatory. It is not automatically a jurisdictional exception. There is no universal regulatory dollar limit that makes it acceptable; credibility is the test. Exam tip: No inspection type is forbidden, but you must justify that your scope leads to a credible value.
Why This Is the Correct Answer
Why this is correct: USPAP does not mandate a specific type of inspection. The key test is whether the selected scope of work (e.g., exterior-only) will yield credible results for the intended use. The appraiser must make this judgment, disclose the scope, and report any limitations. Why the other choices are wrong: Interior inspection is not always mandatory. It is not automatically a jurisdictional exception. There is no universal regulatory dollar limit that makes it acceptable; credibility is the test. Exam tip: No inspection type is forbidden, but you must justify that your scope leads to a credible value.
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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