An appraiser builds a spreadsheet regression to support adjustments. How is it treated?
Correct Answer
B) As analysis the appraiser must be able to support
Why this is correct: Any analytical tool used by an appraiser, including self-created spreadsheets, must be supported by credible data and logical analysis. The appraiser is responsible for the results and must be able to explain and defend the methodology and inputs if challenged. Why the other choices are wrong: "As exempt from disclosure, being the appraiser's own" is incorrect; self-created tools are not exempt from scrutiny or disclosure requirements. "As an automated valuation model under the AVM rule" is incorrect; a personal spreadsheet used as an analytical aid is typically not classified as an AVM for regulatory purposes. "As a substitute for reconciling the approaches" is incorrect; it is a tool within an approach, not a replacement for the reconciliation process. Exam tip: Self-made tools require the same support and defensibility as any other method you use.
Why This Is the Correct Answer
Why this is correct: Any analytical tool used by an appraiser, including self-created spreadsheets, must be supported by credible data and logical analysis. The appraiser is responsible for the results and must be able to explain and defend the methodology and inputs if challenged. Why the other choices are wrong: "As exempt from disclosure, being the appraiser's own" is incorrect; self-created tools are not exempt from scrutiny or disclosure requirements. "As an automated valuation model under the AVM rule" is incorrect; a personal spreadsheet used as an analytical aid is typically not classified as an AVM for regulatory purposes. "As a substitute for reconciling the approaches" is incorrect; it is a tool within an approach, not a replacement for the reconciliation process. Exam tip: Self-made tools require the same support and defensibility as any other method you use.
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How should an appraiser respond to a client requesting a shorter turn time than credible results allow?
Which assignment type still requires the appraiser to develop an opinion of value?
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A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
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