Aerial imagery is used to examine a roof the appraiser could not see from the ground. How should this be reported?
Correct Answer
A) As part of the described extent of inspection
Why this is correct: The appraiser must accurately describe the extent of the inspection. Aerial imagery is a legitimate tool for observation. Reporting it "As part of the described extent of inspection" truthfully states what was examined and the method used, without overstating or understating the inspection. Why the other choices are wrong: "As a physical inspection of the roof surface" is wrong because a physical inspection implies a hands-on or close-proximity examination, which aerial imagery is not. "As an extraordinary assumption about the roof" is wrong because an assumption presumes an uncertain fact; here, the appraiser actually observed the roof via imagery. "As a hypothetical condition regarding condition" is wrong because a hypothetical condition assumes something contrary to fact; the imagery provided an actual observation of the existing condition. Exam tip: Accurately describe your inspection methods; do not label an actual observation as an assumption or condition.
Why This Is the Correct Answer
Option A is right because the honest treatment is to describe what was examined and how, within the reported extent of inspection. The report should say that the roof was observed by aerial imagery rather than from the ground, and should say so plainly enough that a reader knows the difference. That disclosure lets the client and any intended user judge for themselves whether the observation supports the weight placed on it. Overstating the observation, or dressing it up as an assumption, both misdescribe what the appraiser did.
Why the Other Options Are Wrong
Option B: As a physical inspection of the roof surface
Calling imagery a physical inspection of the roof surface overstates it, because a physical inspection implies proximity - the appraiser on a ladder or on the roof - and carries a different level of reliability. Aerial imagery can show missing shingles or ponding but cannot reveal soft decking or fastener condition. Describing the method accurately is exactly what the scope of work disclosure exists for.
Option C: As an extraordinary assumption about the roof
An extraordinary assumption presumes information the appraiser does not have; here the appraiser has information, obtained by observation. Labeling an actual observation as an assumption understates the work performed and confuses a reader about what supports the conclusion. Save the extraordinary assumption for the case where the roof genuinely could not be seen at all and its condition had to be presumed.
Option D: As a hypothetical condition regarding condition
A hypothetical condition is contrary to what is known to exist, which is the opposite of what happened here - the imagery established what does exist. Hypothetical conditions attach to assignments valuing a property as though something were true when the appraiser knows it is not, such as a proposed building treated as complete. Nothing in this fact pattern departs from known reality.
Did I look, or did I presume
Ask one question of every fact in your report: did I look, or did I presume. If you looked, describe the looking in the scope of work. If you presumed something uncertain, that is an extraordinary assumption. If you deliberately treated something known to be false as true, that is a hypothetical condition.
How to use: When new technology appears in a stem - aerial imagery, drone footage, third-party inspection apps, automated data - sort it into looked or presumed. Almost always it is looked, and the answer is a scope of work disclosure describing the method.
Exam Tip
Learn the two definitions verbatim; a large share of USPAP items are answered by noticing that a fact pattern fails one specific word in a definition, most often uncertain or contrary to what is known.
Common Mistakes to Avoid
- -Reporting an aerial observation as a physical inspection
- -Labeling an actual observation as an extraordinary assumption
- -Confusing a hypothetical condition with an assumption about unknown facts
- -Using a new data source without describing it in the scope of work
Concept Deep Dive
Analysis
This question tests the boundary between what an appraiser observed and what an appraiser assumed. The SCOPE OF WORK RULE requires the appraiser to determine and disclose the scope of work necessary for credible assignment results, and the extent to which the property was identified and inspected is part of that scope. Aerial imagery is a real observation, made with a real tool, producing real information about a roof the appraiser could not otherwise see. That makes it a scope of work disclosure, not an assumption. The two terms the distractors reach for have precise USPAP definitions that do not fit. An extraordinary assumption concerns uncertain information used in the analysis which, if found false, could alter the opinions or conclusions - it applies where the appraiser does not know. A hypothetical condition is contrary to what is known to exist on the effective date and is used for the purpose of analysis. Neither describes an observation the appraiser actually made.
Background Knowledge
You need the SCOPE OF WORK RULE and the requirement to disclose the extent of the property identification and inspection, together with the USPAP definitions of extraordinary assumption and hypothetical condition and the requirement in Standards Rule 2-1 that assumptions, extraordinary assumptions, and hypothetical conditions be clearly and accurately disclosed. You should also know that emerging tools change how observations are made, not the duty to describe them accurately.
Real-World Application
An appraiser valuing a steep-roofed two-story reviews high-resolution aerial imagery dated within the month, sees intact composition shingles with no visible displacement, and writes in the report that the roof was observed by aerial imagery rather than from the ground. If the imagery had been unusable, an extraordinary assumption about roof condition, properly disclosed, would have been the alternative.
More Emerging Methods Questions
How does an alternative inspection method affect the appraiser's disclosure obligations?
A collector's photographs show a condition the appraiser believes needs specialist assessment. What is the appropriate step?
What responsibility does an appraiser retain for an error originating in a third-party database?
Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
Which assignment type still requires the appraiser to develop an opinion of value?
A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
What does it mean that a tool cannot comply with USPAP?
An appraiser is asked to review an assignment where an AVM supplied the value. What does the review examine?
Why is the date a data extract was pulled worth recording in the workfile?
A desktop appraisal is best described as an assignment completed how?
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