A reviewer condemns a report for excluding the cost approach — an exclusion the report explains and the data supports. The review itself is now suspect because:
Correct Answer
C) The reviewer applied a personal preference rather than the credibility standard
A reviewer evaluates whether the work is credible within its intended use and scope. A supported, appropriate exclusion of the cost approach is not defective merely because the reviewer prefers that approach. Reviewers may criticize genuinely unsupported methods or exclusions.
Why This Is the Correct Answer
Option C is correct because a reviewer must apply the review methods and techniques necessary for credible assignment results, evaluating whether the work under review is credible. Here the exclusion of the cost approach was explained and supported by the data. Condemning it anyway reflects the reviewer's preference rather than a credibility judgment, which makes the review itself suspect.
Why the Other Options Are Wrong
Option A: Reviews may not comment on an appraiser’s choice of methods
Option A is wrong because reviewers may comment on an appraiser's choice of methods. A reviewer can criticize a genuinely unsupported method or exclusion; the problem here is condemning a supported one.
Option B: Formal opinions about the cost approach require a separate engineering license
Option B is wrong because opinions about the cost approach are within normal appraisal and appraisal review competency. No separate engineering license is needed to evaluate whether the cost approach was appropriately excluded.
Option D: Short reports are entitled to deference
Option D is wrong because report length does not earn deference. A reviewer evaluates credibility in the context of intended use and scope, whether a report is short or long.
Credibility, not my preference
A reviewer asks 'Is this credible for its intended use?' not 'Is this how I would have done it?'
How to use: Use this when a review question contrasts the reviewer's preferences with the credibility of the work.
Exam Tip
If the work under review is explained and supported, a reviewer's disagreement based only on preference is the flaw. Remember that reviewers can still criticize unsupported exclusions.
Common Mistakes to Avoid
- -Believing reviewers cannot comment on methods at all
- -Treating a reviewer's preferred approach as a requirement
- -Assuming any omitted approach makes a report deficient
Concept Deep Dive
Analysis
This question tests the standard a reviewer applies in an appraisal review. The reviewer judges whether the work is credible within its intended use and scope, not whether it matches the reviewer's preferred methods. Condemning a supported, explained exclusion of the cost approach suggests the reviewer used personal preference rather than the credibility standard.
Background Knowledge
In an appraisal review, the reviewer develops an opinion about the quality of another appraiser's work, judged against credibility within the intended use and scope of work. An appraiser can exclude an approach when the exclusion is supported and explained. A reviewer who substitutes personal preference for this standard produces a review that may not be credible.
Real-World Application
A reviewer receives an appraisal of an older home where the appraiser explained that the cost approach was excluded because depreciation estimates were unreliable and buyers in that market do not rely on cost. The data support that reasoning. Flagging the report as deficient only because the reviewer favors the cost approach would undermine the review's credibility.
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