An appraiser is asked to complete an assignment where the scope of work includes only a drive-by inspection and use of automated valuation model data. The appraiser should:
Correct Answer
B) Accept if the scope of work is appropriate for the intended use
The Scope of Work Rule allows for varying levels of investigation as long as the scope is appropriate for the intended use and produces credible results. A limited scope may be acceptable depending on the assignment requirements.
Why This Is the Correct Answer
The Scope of Work Rule allows for varying levels of investigation as long as the scope is appropriate for the intended use and produces credible results. A limited scope may be acceptable depending on the assignment requirements.
Why the Other Options Are Wrong
Option A: Decline the assignment as it violates USPAP
Option A is incorrect because USPAP does not prohibit limited scope assignments. The Scope of Work Rule specifically allows for varying levels of investigation as long as they are appropriate for the intended use and can produce credible results. A drive-by inspection with AVM data may be perfectly acceptable for certain assignment types.
Option C: Require a full interior inspection before accepting
Option C is wrong because USPAP does not require a full interior inspection for all appraisal assignments. The Scope of Work Rule allows appraisers to determine the appropriate level of investigation based on the intended use. Requiring an interior inspection in all cases would contradict the flexibility that USPAP provides.
Option D: Accept only if it's classified as a Restricted Appraisal Report
Option D is incorrect because the scope of work described does not automatically require a Restricted Appraisal Report. The type of report (Self-Contained, Summary, or Restricted) is determined by the intended use and intended users, not by the inspection type or data sources used in the valuation process.
SCOPE Framework
S-uitable for intended use, C-redible results required, O-pen to various methods, P-rofessional judgment key, E-valuate assignment needs
How to use: When you see scope of work questions, remember SCOPE: check if the proposed scope is Suitable for the intended use and can produce Credible results, rather than looking for rigid procedural requirements.
Exam Tip
Focus on whether the scope matches the intended use rather than memorizing required procedures - USPAP emphasizes appropriateness and credibility over specific methodologies.
Common Mistakes to Avoid
- -Thinking USPAP requires specific procedures for all assignments
- -Confusing scope of work requirements with report type requirements
- -Assuming limited scope automatically violates USPAP standards
Concept Deep Dive
Analysis
This question tests understanding of USPAP's Scope of Work Rule, which is fundamental to appraisal practice. The Scope of Work Rule requires that the scope of work be appropriate for the intended use of the appraisal and must produce credible results. It does not mandate specific procedures like interior inspections or particular report types, but rather emphasizes that the appraiser must determine what level of investigation is necessary based on the assignment's purpose. The rule allows for flexibility in appraisal methodology as long as the chosen scope can reasonably support the conclusions and meet the client's needs.
Background Knowledge
USPAP's Scope of Work Rule requires that the scope of work be appropriate for the intended use and produce credible results, but it does not prescribe specific procedures or methodologies. The rule emphasizes that appraisers must use professional judgment to determine what level of investigation is necessary based on the assignment's complexity, intended use, and other relevant factors.
Real-World Application
In practice, drive-by appraisals with AVM support are commonly used for mortgage monitoring, portfolio reviews, or tax assessment challenges where full interior access isn't necessary and the intended use doesn't require that level of detail.
More USPAP Questions
An extraordinary assumption must be:
Under the USPAP Competency Rule, which of the following is required before an appraiser may accept an assignment?
An appraiser is developing an appraisal for a bank loan and discovers that the property has environmental contamination that significantly affects value, but the lender specifically requests that this issue not be mentioned in the report. According to USPAP, the appraiser should:
A Summary Appraisal Report must contain enough information to:
According to USPAP's Ethics Rule, an appraiser must keep confidential information about the client and intended users confidential unless disclosure is required by:
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
Report Writing & Compliance
10% of exam