An appraiser completes a desktop assignment relying on a collector's report of interior condition. What does this typically require?
Correct Answer
C) An extraordinary assumption about that data
Why this is correct: An extraordinary assumption is an assumption about uncertain information used in an assignment that, if found to be false, could alter the appraiser's opinions or conclusions. Relying on an unverified third-party report about interior condition involves such uncertainty, requiring this disclosure. Why the other choices are wrong: 'A hypothetical condition regarding the interior' would be used if the appraiser knew the reported condition was false, which is not the case here. 'A jurisdictional exception to Standard 1' is for situations where USPAP conflicts with law or public policy, not for inspection methods. 'A second appraiser to verify the collection' is not a USPAP requirement. Exam tip: If you didn't see it yourself and it's material, you're likely making an extraordinary assumption.
Why This Is the Correct Answer
Why this is correct: An extraordinary assumption is an assumption about uncertain information used in an assignment that, if found to be false, could alter the appraiser's opinions or conclusions. Relying on an unverified third-party report about interior condition involves such uncertainty, requiring this disclosure. Why the other choices are wrong: 'A hypothetical condition regarding the interior' would be used if the appraiser knew the reported condition was false, which is not the case here. 'A jurisdictional exception to Standard 1' is for situations where USPAP conflicts with law or public policy, not for inspection methods. 'A second appraiser to verify the collection' is not a USPAP requirement. Exam tip: If you didn't see it yourself and it's material, you're likely making an extraordinary assumption.
More emerging-appraisal-methods Questions
An appraiser consults a geographic information system for parcel boundaries. What limitation applies?
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?
A lender's guidelines require an interior inspection, but the client asks for a desktop product to save time. What should the appraiser do?
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?
An appraiser relies on a published capitalization rate survey. What must be considered?
A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
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