An appraiser notices staining on basement walls and a musty odor during inspection. The most appropriate action is to:
Correct Answer
C) Note the observations and recommend professional evaluation
Record the staining and musty odor accurately and obtain or recommend qualified evaluation as appropriate to the credible scope. These observations can indicate moisture concerns but do not alone diagnose mold or its extent. An appraiser may analyze a supported market effect within competence; a field kit or arbitrary deduction is not a substitute for necessary reliable information. Do not ignore a material observed condition.
Why This Is the Correct Answer
Option C is correct because the appraiser should record the staining and musty odor and recommend evaluation by a qualified professional. These signs can indicate moisture concerns but do not by themselves diagnose mold or its extent. Fannie Mae guidance calls for noting deficiencies and making the appraisal subject to a qualified inspection when the appraiser is not qualified to evaluate them.
Why the Other Options Are Wrong
Option A: Test for mold presence using field test kits
Option A, testing for mold with field test kits, goes beyond typical appraiser competence and a kit is not a substitute for necessary reliable information. The appraiser reports the observation and relies on qualified evaluation.
Option B: Disregard the observations unless asked to investigate
Option B, disregarding the observations unless asked, ignores a potentially material observed condition. Credible results require reporting relevant conditions the appraiser actually observes.
Option D: Assume mold is present and make value adjustments
Option D, assuming mold is present and making value adjustments, treats an unconfirmed condition as fact. Staining and odor do not alone establish mold or its extent, so an arbitrary adjustment is unsupported.
See it, say it, refer it
Report what you observe and refer what you cannot diagnose to a qualified professional. Do not ignore it and do not guess.
How to use: Use this for questions about observed defects outside the appraiser's expertise.
Exam Tip
Choose the answer that reports the observation and calls for qualified evaluation. Answers that ignore, self-diagnose or assume a conclusion are usually wrong.
Common Mistakes to Avoid
- -Ignoring observed conditions because no one asked about them
- -Declaring mold present based on smell or stains
- -Applying an unsupported dollar deduction for a suspected condition
Concept Deep Dive
Analysis
This question tests how an appraiser handles observed signs of a possible moisture or mold problem. Staining and a musty odor are observations, not a diagnosis, so the appraiser reports them accurately and obtains or recommends qualified evaluation. The appraiser does not ignore the condition, self-test or assume a value penalty.
Background Knowledge
Appraisers are not home inspectors or environmental specialists, but they must report adverse conditions they observe. When a condition is beyond their expertise, they note it and rely on a qualified professional's evaluation. Market effects can be analyzed only when supported by reliable information.
Real-World Application
During a refinance inspection, an appraiser notices water lines on basement walls and a damp smell. The appraiser photographs and describes the conditions and completes the appraisal subject to an inspection by a qualified professional. The report does not state that mold is present.
More Property Description Questions
A local zoning ordinance allows these maximum densities: R-1, 4 units per acre; R-2, 8 units per acre; R-4, 20 units per acre; PUD (with approval), 12 units per acre. Which category allows the highest density?
What design advantage is commonly associated with post-and-beam construction?
A hypothetical local ordinance permits either a single-family house or duplex on the site. The existing single-family house complies with all current rules. Which statement is supported?
A zoning variance allowing a reduced side setback is granted for a parcel. After the parcel is sold, who generally holds the benefit of the variance, subject to its conditions?
Under ANSI Z765-2021 as applied by Fannie Mae, a staircase runs from the second floor down to the first floor. Its area is counted as part of:
Under ANSI Z765-2021, as Fannie Mae requires for a detached house, where are exterior dimensions taken on a brick-veneer wall?
A building's HVAC system would be classified as which type of building component?
A home on a large tract is valued at $620,000 including the land it needs. The remaining excess land could be sold separately and contributes a net $95,000 after separation costs. What is the total indicated value?
A covered sale concerns a residence built in 1965. Which hazard is the subject of the federal pre 1978 housing disclosure rule, without assuming its actual presence?
Which site characteristic is most likely to reduce site utility by restricting where a typical dwelling can be placed?
People Also Study
Real Estate Market
13.6% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam
Previous Question
An enforceable transferable lease has five years of below-market rent and no offsetting differences. What measures its rent-benefit component?
Next Question
A landlord owns property subject to a lease under which the tenant pays base rent and specified property costs. What ownership interest is the landlord appraising, subject to that lease?