An appraiser wishes to rely on an AVM figure in developing an opinion of value. What is required?
Correct Answer
A) A basis for believing the output is credible
Why this is correct: USPAP requires the appraiser to have a reasonable basis for believing any tool or data used is credible. Simply accepting an AVM output without analysis violates the appraiser's responsibility to ensure credible results. Why the other choices are wrong: "Written permission from the model's vendor" is not a USPAP requirement. "That the model be registered with the state" is not a standard requirement. "That the client select the model to be used" does not relieve the appraiser of the responsibility to analyze its credibility. Exam tip: The appraiser is always responsible for the credibility of all inputs, including AVM outputs.
Why This Is the Correct Answer
Why this is correct: USPAP requires the appraiser to have a reasonable basis for believing any tool or data used is credible. Simply accepting an AVM output without analysis violates the appraiser's responsibility to ensure credible results. Why the other choices are wrong: "Written permission from the model's vendor" is not a USPAP requirement. "That the model be registered with the state" is not a standard requirement. "That the client select the model to be used" does not relieve the appraiser of the responsibility to analyze its credibility. Exam tip: The appraiser is always responsible for the credibility of all inputs, including AVM outputs.
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