A real-property appraisal assignment includes movable furniture and a tractor as non-real-property assets. Under USPAP 2024 Standards Rules 1-2(e)(iii) and 1-4(g), how must those included assets be treated?
Correct Answer
A) Identify the included non-real-property assets and analyze their effect on value
SR 1-2(e)(iii) calls for identification of personal property, trade fixtures or intangible assets included in the appraisal. SR 1-4(g) requires analysis of the effect on value of those non-real-property assets. Their inclusion in a sale does not justify automatically assigning replacement cost or folding them into the real-property value conclusion. The required analysis depends on the assignment and relevant market evidence; the cited provisions do not create a ten-percent exemption.
Why This Is the Correct Answer
SR 1-2(e)(iii) calls for identification of personal property, trade fixtures or intangible assets included in the appraisal. SR 1-4(g) requires analysis of the effect on value of those non-real-property assets. Their inclusion in a sale does not justify automatically assigning replacement cost or folding them into the real-property value conclusion. The required analysis depends on the assignment and relevant market evidence; the cited provisions do not create a ten-percent exemption.
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