Which listed item is not universally required in every written Appraisal Report under Standard 2?
Correct Answer
D) A detailed cost approach in every assignment
A cost approach is developed when necessary for credible results, and the applicable report must explain the approach treatment as required. Standard 2 does not mandate a detailed cost calculation in every Appraisal Report. Required identification, dates, and signed certification remain applicable, with any permitted confidentiality treatment. Oral reporting has distinct substantive and workfile requirements and should not be conflated with written certification placement.
Why This Is the Correct Answer
Option D is correct because a cost approach must be developed only when it is necessary for credible assignment results, as SR 1-4(b) states. The Interagency Guidelines likewise say the appraisal must include any approach that is applicable and necessary. A detailed cost approach in each assignment is therefore not a universal Standard 2 requirement.
Why the Other Options Are Wrong
Option A: Client identification, within confidentiality rules
Option A, client identification within confidentiality rules, is a required element of an Appraisal Report, so it is not the item that is not universally required.
Option B: Identification of the effective date
Option B, identification of the effective date, is required in each Appraisal Report, so it is not the exception.
Option C: The signed certification required by SR 2-3
Option C, the signed certification required by SR 2-3, is a required part of a written real property appraisal report, so it is not the exception.
Standing versus when-needed
Client, date and certification are standing report items; an approach to value is a when-needed item tied to credibility.
How to use: Use standing versus when-needed to find the exception in a list of report items.
Exam Tip
In a not-required question, the conditional item, such as an approach developed only when necessary, is usually the answer.
Common Mistakes to Avoid
- -Thinking every report needs a detailed cost approach
- -Believing client identification can be dropped entirely
- -Omitting the reason an approach was not developed
Concept Deep Dive
Analysis
This question asks which item is not universally required in a written Appraisal Report. Client identification, the effective date and the signed certification are standard report requirements. A developed and detailed cost approach is required only when necessary for credible results.
Background Knowledge
Standard 2 sets the minimum content of written reports, including identification of the client and intended users, the effective date and a signed certification. Approaches to value are developed when necessary for credible results, and the report explains which were used and why others were excluded.
Real-World Application
An appraiser preparing a report on a condominium unit decides the cost approach is not necessary for credible results. Her report still identifies the client and effective date, includes a signed certification, and states why the cost approach was excluded.
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