An appraiser reviewing another appraiser's report under Standard 3 develops her own opinion that the original value is wrong. What is she doing?
Correct Answer
B) Permitted review work that includes the reviewer's own opinion of value
Why this is correct: Under Standard 3, an appraisal review may include the reviewer's own opinion of value. When it does, the reviewer must comply with the development standards (Standard 1) for that opinion. Disagreement is part of the analytical process. Why the other choices are wrong: 'Clearly exceeding a reviewer's lawful authority under the review standards' is incorrect; forming an independent opinion is permitted. 'An automatic ethics referral of the original appraiser' is wrong; a differing opinion is not an ethics violation. 'Nothing regulated, since reviews are informal' is false; Standard 3 governs appraisal reviews. Exam tip: A reviewer can develop their own value opinion, but then they must follow Standard 1 for that development.
Why This Is the Correct Answer
Why this is correct: Under Standard 3, an appraisal review may include the reviewer's own opinion of value. When it does, the reviewer must comply with the development standards (Standard 1) for that opinion. Disagreement is part of the analytical process. Why the other choices are wrong: 'Clearly exceeding a reviewer's lawful authority under the review standards' is incorrect; forming an independent opinion is permitted. 'An automatic ethics referral of the original appraiser' is wrong; a differing opinion is not an ethics violation. 'Nothing regulated, since reviews are informal' is false; Standard 3 governs appraisal reviews. Exam tip: A reviewer can develop their own value opinion, but then they must follow Standard 1 for that development.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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