An appraisal effective as of a date eight months in the past, for an estate-tax filing, is called:
Correct Answer
A) A retrospective appraisal, using data available as of that past date
Why this is correct: A retrospective appraisal has an effective date in the past, such as for estate tax purposes, and must use data available or knowable as of that past date, as explained originally. Why the other choices are wrong: "A stale appraisal, prohibited after ninety days" is incorrect; USPAP does not prohibit retrospective appraisals based on age. "An updated appraisal of the prior report" is wrong; an update revises a prior report, while a retrospective is a new assignment. "A hypothetical appraisal, because the effective date is not today" is false; a retrospective effective date is not hypothetical. Exam tip: Retrospective means looking back; use historical data from the effective date.
Why This Is the Correct Answer
Why this is correct: A retrospective appraisal has an effective date in the past, such as for estate tax purposes, and must use data available or knowable as of that past date, as explained originally. Why the other choices are wrong: "A stale appraisal, prohibited after ninety days" is incorrect; USPAP does not prohibit retrospective appraisals based on age. "An updated appraisal of the prior report" is wrong; an update revises a prior report, while a retrospective is a new assignment. "A hypothetical appraisal, because the effective date is not today" is false; a retrospective effective date is not hypothetical. Exam tip: Retrospective means looking back; use historical data from the effective date.
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:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
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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