An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
Correct Answer
D) An honest self-assessment and any steps needed to be current
Why this is correct: The governing concept is USPAP's Competency Rule, which requires an appraiser to be competent to perform the assignment or to disclose any lack of knowledge and take the necessary steps to become competent. The original explanation correctly notes that competency is dynamic, requiring a current, credible result. An honest self-assessment of one's present knowledge and experience regarding the property type, followed by actions like research or consulting with a specialist, fulfills this rule. Why the other choices are wrong: 'Consultation with the state appraisal board before accepting' is not a USPAP requirement for competency; the rule places the responsibility on the appraiser. 'Automatic refusal of the assignment' is incorrect because the Competency Rule allows an appraiser to accept an assignment after taking appropriate steps to become competent. 'A waiver signed by the client' is wrong; while disclosure to the client is required if competency steps are needed, a client waiver does not absolve the appraiser from the ethical duty to be competent. Exam tip: Remember, USPAP's Competency Rule is about your current ability to produce a credible assignment result, not about past experience alone.
Why This Is the Correct Answer
Why this is correct: The governing concept is USPAP's Competency Rule, which requires an appraiser to be competent to perform the assignment or to disclose any lack of knowledge and take the necessary steps to become competent. The original explanation correctly notes that competency is dynamic, requiring a current, credible result. An honest self-assessment of one's present knowledge and experience regarding the property type, followed by actions like research or consulting with a specialist, fulfills this rule. Why the other choices are wrong: 'Consultation with the state appraisal board before accepting' is not a USPAP requirement for competency; the rule places the responsibility on the appraiser. 'Automatic refusal of the assignment' is incorrect because the Competency Rule allows an appraiser to accept an assignment after taking appropriate steps to become competent. 'A waiver signed by the client' is wrong; while disclosure to the client is required if competency steps are needed, a client waiver does not absolve the appraiser from the ethical duty to be competent. Exam tip: Remember, USPAP's Competency Rule is about your current ability to produce a credible assignment result, not about past experience alone.
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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