'Credible' as USPAP uses the term means:
Correct Answer
B) Worthy of belief, measured in the context of the intended use
Why this is correct: In USPAP, 'credible' means 'worthy of belief.' This is measured in the context of the assignment's intended use—what is credible for one use may not be for another. Why the other choices are wrong: 'Certified as accurate by a second appraiser' is wrong; peer review is not required for credibility. 'Within ten percent of the property's eventual sale price' is wrong; there is no fixed numerical tolerance for credibility. 'Acceptable to the client who ordered the work' is wrong; client acceptance does not define USPAP credibility. Exam tip: Credibility is not perfection. It means the results are believable and supportable for the specific intended use.
Why This Is the Correct Answer
Why this is correct: In USPAP, 'credible' means 'worthy of belief.' This is measured in the context of the assignment's intended use—what is credible for one use may not be for another. Why the other choices are wrong: 'Certified as accurate by a second appraiser' is wrong; peer review is not required for credibility. 'Within ten percent of the property's eventual sale price' is wrong; there is no fixed numerical tolerance for credibility. 'Acceptable to the client who ordered the work' is wrong; client acceptance does not define USPAP credibility. Exam tip: Credibility is not perfection. It means the results are believable and supportable for the specific intended use.
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?
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In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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