A client asks an appraiser to raise a completed report’s value conclusion by $15,000 solely to match the contract price, without providing new evidence. What should the appraiser do?
Correct Answer
D) Refuse the predetermined increase and document the request
USPAP requires independent, impartial, objective opinions. A client’s desired contract price alone is not valuation evidence. Refuse a predetermined value change and document the request. If relevant new evidence later emerges, assess it independently rather than treating every reconsideration as forbidden.
Why This Is the Correct Answer
Option D is correct because USPAP states an appraiser must not agree to perform an assignment that includes reporting predetermined opinions and conclusions. Raising the value by $15,000 only to match the contract price, with no new evidence, is a predetermined change. Refusing and documenting the request protects the appraiser's independence.
Why the Other Options Are Wrong
Option A: Increase the value and note the client request
Option A says to increase the value by the requested amount and note the client request. Noting the request does not make a predetermined $15,000 increase acceptable; the change itself lacks evidentiary support.
Option B: Withdraw the completed report and refund the client’s fee
Option B says to withdraw the completed report and refund the fee. Nothing in the facts requires withdrawing a report that is credible; the issue is the improper request, which the appraiser should refuse.
Option C: Increase the value because the contract price is higher
Option C says to increase the value because the contract price is higher. A client's desired contract price alone is not valuation evidence that supports raising the conclusion.
Evidence moves value, not wishes
Only new market evidence can justify changing a value. A client's target number is not evidence.
How to use: Use this when a client asks to change a value to meet a target without new data.
Exam Tip
Refusing a predetermined change is not the same as refusing to reconsider; new relevant evidence can still be evaluated.
Common Mistakes to Avoid
- -Changing the value because the contract price is higher
- -Thinking a note about the request makes the change acceptable
- -Refusing to consider legitimate new evidence
Concept Deep Dive
Analysis
This question tests independence and the prohibition on reporting predetermined opinions. A client asking to raise a value by $15,000 only to match the contract price, without new evidence, is asking for a predetermined result. The appraiser must refuse and should document the request.
Background Knowledge
USPAP requires independent, impartial and objective opinions and prohibits reporting predetermined opinions. Compensation must not be contingent on a predetermined value or direction in value. If relevant new evidence emerges, the appraiser can consider it on its merits.
Real-World Application
A loan officer calls asking for the value to be raised $15,000 so the deal can close at the contract price. No new sales or corrections are offered. The appraiser declines to change the value, keeps a record of the request in the workfile, and offers to review any new comparable data the lender supplies.
More USPAP Questions
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