An appraiser wishes to report the conclusion as a range rather than a single figure. This is:
Correct Answer
B) Permitted when appropriate to the assignment and clearly communicated
Why this is correct: USPAP does not require a single-point estimate. A value range (or other expression like 'not less than') is permitted if it is appropriate for the assignment and is clearly communicated so intended users understand the conclusion. Why the other choices are wrong: 'Prohibited — a single point value is required in every written report' is false. 'Permitted only in litigation assignments prepared for attorney clients' is incorrect; it can be used in various assignments. 'Required whenever more than two approaches to value were developed' is wrong; reconciliation of approaches does not mandate a range. Exam tip: You can report a range. Just ensure it's clearly explained and appropriate.
Why This Is the Correct Answer
Why this is correct: USPAP does not require a single-point estimate. A value range (or other expression like 'not less than') is permitted if it is appropriate for the assignment and is clearly communicated so intended users understand the conclusion. Why the other choices are wrong: 'Prohibited — a single point value is required in every written report' is false. 'Permitted only in litigation assignments prepared for attorney clients' is incorrect; it can be used in various assignments. 'Required whenever more than two approaches to value were developed' is wrong; reconciliation of approaches does not mandate a range. Exam tip: You can report a range. Just ensure it's clearly explained and appropriate.
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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