An assignment calls for an opinion of investment value rather than market value. The appraiser must:
Correct Answer
D) State the value type and its definition, and develop it accordingly
Why this is correct: Appraisers can develop opinions of various value types (e.g., investment, use, liquidation). The key requirements are to clearly state the type of value, provide its definition, and develop the opinion consistent with that definition to avoid confusion with market value. Why the other choices are wrong: 'Decline, since only market value opinions may be developed by appraisers' is incorrect; other value types are permissible assignments. 'Develop market value first and then apply a standard adjustment factor' is wrong; investment value is based on specific investor criteria, not an adjustment to market value. 'Report the figure without labeling it, to avoid confusing intended users' is prohibited and would be misleading. Exam tip: Always label the value type and define it. Don't let a non-market value be mistaken for market value.
Why This Is the Correct Answer
Why this is correct: Appraisers can develop opinions of various value types (e.g., investment, use, liquidation). The key requirements are to clearly state the type of value, provide its definition, and develop the opinion consistent with that definition to avoid confusion with market value. Why the other choices are wrong: 'Decline, since only market value opinions may be developed by appraisers' is incorrect; other value types are permissible assignments. 'Develop market value first and then apply a standard adjustment factor' is wrong; investment value is based on specific investor criteria, not an adjustment to market value. 'Report the figure without labeling it, to avoid confusing intended users' is prohibited and would be misleading. Exam tip: Always label the value type and define it. Don't let a non-market value be mistaken for market value.
More USPAP Questions
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