Appraisal, appraisal review and appraisal consulting differ in that a review:
Correct Answer
B) Develops an opinion about the quality of another appraiser's work
Why this is correct: Appraisal review develops an opinion about the quality of another appraiser's work (completeness, adequacy, relevance, reasonableness). Its subject is the report/analysis, not the property. Why the other choices are wrong: "Requires the reviewer to hold a higher certification level" is false; competency is required, not a higher license. "May be performed only after a complaint" is incorrect; reviews are routine. "Always concludes with the reviewer's own independent opinion of value" is wrong; a review may, but need not, include a value opinion. Exam tip: Review = opinion on the work. Appraisal = opinion on the property.
Why This Is the Correct Answer
Why this is correct: Appraisal review develops an opinion about the quality of another appraiser's work (completeness, adequacy, relevance, reasonableness). Its subject is the report/analysis, not the property. Why the other choices are wrong: "Requires the reviewer to hold a higher certification level" is false; competency is required, not a higher license. "May be performed only after a complaint" is incorrect; reviews are routine. "Always concludes with the reviewer's own independent opinion of value" is wrong; a review may, but need not, include a value opinion. Exam tip: Review = opinion on the work. Appraisal = opinion on the property.
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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