An appraiser runs only the sales comparison approach on a standard tract home and omits the cost and income approaches. Under Standard 1 this is:
Correct Answer
C) Proper if they are unnecessary for credible results and the exclusion is explained
Why this is correct: USPAP requires the appraiser to use the approaches necessary for credible results. For a standard tract home with ample comparable sales, the sales comparison approach alone may be sufficient. The appraiser must explain in the report why other approaches were excluded. Why the other choices are wrong: All three approaches are not always mandatory. A lender's waiver does not override USPAP's credibility requirement. It is not automatic grounds for review if properly justified. Exam tip: You don't need all three approaches if you can justify why the ones used are sufficient for credibility.
Why This Is the Correct Answer
Why this is correct: USPAP requires the appraiser to use the approaches necessary for credible results. For a standard tract home with ample comparable sales, the sales comparison approach alone may be sufficient. The appraiser must explain in the report why other approaches were excluded. Why the other choices are wrong: All three approaches are not always mandatory. A lender's waiver does not override USPAP's credibility requirement. It is not automatic grounds for review if properly justified. Exam tip: You don't need all three approaches if you can justify why the ones used are sufficient for credibility.
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:
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