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
D) Accept if the scope of work is appropriate for the intended use
An exterior-only observation with AVM information is not automatically prohibited or automatically sufficient. Accept only if the actual research and analysis can produce credible results for the identified intended use, meet applicable laws and program conditions, and satisfy acceptable-scope benchmarks. Understand relevant model limitations and disclose actual work and material limitations. A Restricted Appraisal Report changes reporting requirements rather than curing inadequate development; modify terms or decline if necessary.
Why This Is the Correct Answer
Option D is correct because USPAP lets the appraiser accept a limited scope if it is appropriate for the intended use and produces credible results. USPAP states that assignment conditions must not limit the scope of work so much that results are not credible in the context of the intended use.
Why the Other Options Are Wrong
Option A: Decline the assignment as it violates USPAP
Option A is wrong because a drive-by inspection with AVM data does not by itself violate USPAP. Whether it is acceptable depends on whether the scope supports credible results for the intended use.
Option B: Accept only if it's classified as a Restricted Appraisal Report
Option B is wrong because classifying the work as a Restricted Appraisal Report does not fix an inadequate scope. The report option changes reporting content, not the development needed for credible results.
Option C: Require a full interior inspection before accepting
Option C is wrong because USPAP does not require a full interior inspection for all assignments. An interior inspection is needed only when the intended use makes it necessary for credible results.
Scope fits the use
The right scope is whatever the intended use needs for credible results; less can be fine, too little is not.
How to use: Use this for any question about limited inspections, desktop work or AVM reliance.
Exam Tip
Answers that tie acceptance to intended use and credibility usually beat answers that ban or require a specific inspection type.
Common Mistakes to Avoid
- -Assuming any limited inspection violates USPAP
- -Thinking a Restricted Appraisal Report cures inadequate development
- -Relying on AVM output without understanding its limits
Concept Deep Dive
Analysis
This question tests the scope of work rule. A limited scope such as an exterior-only observation with AVM data is acceptable only if it produces credible results for the intended use, so the decision turns on the intended use rather than a fixed rule.
Background Knowledge
The scope of work is acceptable when it meets the expectations of regular intended users and what peers would do in a similar assignment. Appraisers who use AVM output should understand its limitations and disclose the work actually performed.
Real-World Application
A lender orders an exterior-only appraisal for a home equity line review. The appraiser confirms that the program accepts this scope, checks that AVM data is consistent with market evidence, and discloses the limitations in the report.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam