A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
Correct Answer
D) Investigate what each analysis may have missed
Why this is correct: Professional standards require the appraiser to reconcile divergent value indications. Investigating the cause ensures credibility and may reveal errors in either the model's inputs or the appraiser's own analysis. Why the other choices are wrong: Adopting the model figure without analysis violates the appraiser's responsibility for the conclusion. Reporting both without reconciliation fails to provide a credible opinion. Disregarding the model outright is improper; the appraiser must consider all relevant information. Exam tip: A divergence is a red flag to investigate, not a signal to automatically choose one result.
Why This Is the Correct Answer
Why this is correct: Professional standards require the appraiser to reconcile divergent value indications. Investigating the cause ensures credibility and may reveal errors in either the model's inputs or the appraiser's own analysis. Why the other choices are wrong: Adopting the model figure without analysis violates the appraiser's responsibility for the conclusion. Reporting both without reconciliation fails to provide a credible opinion. Disregarding the model outright is improper; the appraiser must consider all relevant information. Exam tip: A divergence is a red flag to investigate, not a signal to automatically choose one result.
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Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
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How should an appraiser respond to a client requesting a shorter turn time than credible results allow?
Which assignment type still requires the appraiser to develop an opinion of value?
An appraiser relies on a published capitalization rate survey. What must be considered?
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