A 'relevant characteristic' of a property is one that:
Correct Answer
D) Affects the assignment's problem and its results
Identify characteristics relevant to the type and definition of value and intended use, including appropriate physical, legal and economic attributes. Relevance depends on the appraisal problem and necessary analysis; a fact need not produce a different final dollar conclusion to matter. A client request, assessment entry or street visibility alone does not establish or exclude relevance. Investigate potentially material matters to the extent necessary for credible assignment results.
Why This Is the Correct Answer
Option D is correct because a relevant characteristic is one that matters to the assignment's problem and results, given the type and definition of value and the intended use. USPAP notes that identifying relevant characteristics is a judgment made by the appraiser that requires competency in that type of assignment. Physical, legal and economic attributes may all be relevant.
Why the Other Options Are Wrong
Option A: The client specifically asks about
Option A, a characteristic the client specifically asks about, is wrong because relevance comes from the appraisal problem, not from a client's interest alone. A client may overlook a relevant feature or ask about an irrelevant one.
Option B: Appears somewhere in the county's assessment record
Option B, a characteristic that appears in the county assessment record, is wrong because being recorded does not make a feature relevant, and relevant features may not appear in that record.
Option C: Is visible from the public right of way
Option C, a characteristic visible from the public right of way, is wrong because visibility does not decide relevance. Legal and economic characteristics, and hidden physical ones, can be relevant even if not visible.
Relevant means it matters here
A characteristic is relevant if it matters to this assignment's problem, not because someone asked or it is listed somewhere.
How to use: Use this when a question asks what makes a property characteristic relevant.
Exam Tip
Choose the answer that ties relevance to the assignment's problem and intended use rather than to a data source or a request.
Common Mistakes to Avoid
- -Relying only on assessment records to identify characteristics
- -Ignoring legal and economic attributes that are not visible
- -Letting the client decide what is relevant
Concept Deep Dive
Analysis
This question tests the meaning of relevant characteristics in problem identification. Relevance depends on the appraisal problem: the type and definition of value, the intended use, and the analysis needed. Identifying relevant characteristics is the appraiser's judgment, not a matter of what the client asks about or what a record shows.
Background Knowledge
Standard 1 requires the appraiser to identify the characteristics of the property relevant to the type and definition of value and intended use. These can include location, physical, legal and economic attributes, as well as the interest being valued. Deciding what is relevant is a professional judgment that requires competency.
Real-World Application
An appraiser finds a recorded drainage easement crossing the backyard that is not visible from the street. Because it may affect the property's usability and value, she treats it as a relevant characteristic and analyzes it.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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
Related Tools
Previous Question
An appraiser discovers mid-assignment that the property has a complex ground lease she does not know how to analyze. What does USPAP require?
Next Question
In a nonfederal assignment, a binding applicable law actually precludes compliance with one identified USPAP requirement. What is the appropriate treatment?