A reviewer who develops an opinion of value as part of a review assignment must:
Correct Answer
C) Comply with the development standards for that opinion
Why this is correct: If a reviewer develops their own opinion of value (not just reviewing another's), they must comply with the applicable development standards (Standard 1 for real property) for that opinion. The reviewer cannot rely on the original appraiser's work without meeting the same development requirements. Why the other choices are wrong: 'Limit the opinion to the range in the original report' is wrong because the reviewer's independent value opinion is not constrained by the original report's range. 'Adopt the original appraiser's scope of work' is wrong because the reviewer must determine their own appropriate scope of work for the value opinion. 'Obtain the original appraiser's consent first' is wrong because consent is not required by USPAP. Exam tip: A review that includes a value opinion is essentially two assignments: a review and an appraisal. Both sets of standards apply.
Why This Is the Correct Answer
Why this is correct: If a reviewer develops their own opinion of value (not just reviewing another's), they must comply with the applicable development standards (Standard 1 for real property) for that opinion. The reviewer cannot rely on the original appraiser's work without meeting the same development requirements. Why the other choices are wrong: 'Limit the opinion to the range in the original report' is wrong because the reviewer's independent value opinion is not constrained by the original report's range. 'Adopt the original appraiser's scope of work' is wrong because the reviewer must determine their own appropriate scope of work for the value opinion. 'Obtain the original appraiser's consent first' is wrong because consent is not required by USPAP. Exam tip: A review that includes a value opinion is essentially two assignments: a review and an appraisal. Both sets of standards apply.
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:
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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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