After delivering a $485,000 URAR, an appraiser discovers a previously undisclosed $15,000 seller repair credit on a comparable sale that may materially change the analysis. What is the most appropriate response?
Correct Answer
A) Inform the client, reassess the concession, and correct the report if materially affected
A material undisclosed concession must be analyzed rather than ignored. Communicate the finding to the client, determine its effect on the opinion, and issue a corrected or new report if appropriate to avoid a misleading result. USPAP does not specify a universal 30-day amendment deadline or one required report label.
Why This Is the Correct Answer
The newly discovered repair credit is material to the comparable-sale analysis. Notify the client, reassess the transaction and determine whether a corrected or new report is needed; USPAP imposes no universal 30-day or automatic “supplemental report” format.
More USPAP Questions
An appraiser is analyzing three comparable sales with the following data: Sale 1: $350,000 with +$10,000 adjustments; Sale 2: $340,000 with -$5,000 adjustments; Sale 3: $360,000 with -$15,000 adjustments. What are the adjusted sale prices?
An AMC acting for a creditor offers $200 for a covered residential appraisal when comparable work locally often pays $400–$450. Under Regulation Z’s customary-and-reasonable fee rule, which party bears the compensation obligation?
How often must appraisers complete continuing education to maintain their license or certification?
An AMC placed 2,500 appraisal orders in a year. What additional fact is needed to determine whether it meets the federal AMC panel-size threshold?
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How often must licensed and certified appraisers complete continuing education to maintain their credentials according to AQB requirements?
A state appraiser regulatory agency is conducting a review of an appraiser's work. Which of the following is NOT typically within their authority?
An appraiser is asked to provide a retrospective value opinion for a property as of a date one year ago. The current market conditions are significantly different from those a year ago. The appraiser should:
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