An appraiser must not accept an assignment that includes reporting:
Correct Answer
D) A predetermined opinion or conclusion
Do not accept an assignment conditioned on reporting a predetermined opinion or conclusion. The opinion must arise from independent analysis; a retrospective date, nonlending purpose or multiple appropriate approaches is not itself prohibited.
Why This Is the Correct Answer
Option D is correct because USPAP states that an appraiser must not agree to perform an assignment that includes the reporting of predetermined opinions and conclusions. An opinion fixed in advance is not the product of impartial analysis.
Why the Other Options Are Wrong
Option A: A value as of a retrospective date
Option A refers to a value as of a retrospective date. Retrospective appraisals with past effective dates are permitted and common, for example in estate work.
Option B: More than one approach to value
Option B refers to more than one approach to value. Developing multiple applicable approaches is permitted and often supports credible results.
Option C: An opinion for a non-lending purpose
Option C refers to an opinion for a non-lending purpose. Appraisals for purposes such as estates, litigation or sales decisions are permitted.
Analysis first, answer second
The value comes out of the analysis, not into it. An assignment that sets the answer first cannot be accepted.
How to use: Use this to spot assignments that improperly fix the outcome.
Exam Tip
When asked what an appraiser must not accept, look for the option that compromises independence rather than ordinary assignment features.
Common Mistakes to Avoid
- -Thinking retrospective appraisals are prohibited
- -Believing only lending appraisals are allowed
- -Accepting a target value with the intent to analyze independently later
Concept Deep Dive
Analysis
This question tests the Ethics Rule's conduct provision on predetermined opinions. An appraiser must not agree to perform an assignment that includes reporting predetermined opinions and conclusions, because the opinion must come from independent analysis. The other options describe ordinary, permitted assignment features.
Background Knowledge
The conduct section of the Ethics Rule requires appraisers to perform assignments with impartiality, objectivity and independence. Agreeing in advance to report a specific result undermines that independence. Related rules address contingent compensation tied to predetermined results.
Real-World Application
A client tells an appraiser the property must appraise at a specific figure for a refinance to work and asks for that number. The appraiser declines to agree to any predetermined result and explains the opinion will be based on market analysis.
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?
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