A 'relevant characteristic' of a property is one that:
Correct Answer
D) Affects the assignment's problem and its results
Why this is correct: In appraisal, relevance is defined by the specific assignment's problem and purpose. A characteristic is relevant if it has a material effect on the value conclusion or the analysis leading to it. What matters in one appraisal (e.g., a view for a luxury home) may be irrelevant in another (e.g., for an industrial property). Why the other choices are wrong: A client's specific request does not automatically make a characteristic relevant to value. Being in the county's assessment record is an administrative fact, not a determinant of relevance for the appraisal problem. Being visible from the public right of way is a physical attribute, but it may not affect value in the given assignment. Exam tip: Relevance is tied to the assignment's problem. Ask: 'Does this fact change the value opinion?' If yes, it's relevant.
Why This Is the Correct Answer
Why this is correct: In appraisal, relevance is defined by the specific assignment's problem and purpose. A characteristic is relevant if it has a material effect on the value conclusion or the analysis leading to it. What matters in one appraisal (e.g., a view for a luxury home) may be irrelevant in another (e.g., for an industrial property). Why the other choices are wrong: A client's specific request does not automatically make a characteristic relevant to value. Being in the county's assessment record is an administrative fact, not a determinant of relevance for the appraisal problem. Being visible from the public right of way is a physical attribute, but it may not affect value in the given assignment. Exam tip: Relevance is tied to the assignment's problem. Ask: 'Does this fact change the value opinion?' If yes, it's relevant.
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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An appraiser discovers mid-assignment that the property has a complex ground lease she does not know how to analyze. What does USPAP require?
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An appraiser is asked to complete an assignment using only the cost approach due to a local regulation, even though USPAP would normally require consideration of all three approaches. This situation would require: