Every written appraisal report must, at minimum, state:
Correct Answer
B) The scope of work used to develop the opinions and conclusions
Why this is correct: USPAP Standards Rule 2-2(a)(vii) requires every written appraisal report to state the scope of work used to develop the opinions and conclusions. This disclosure allows intended users to assess the sufficiency of the work. Why the other choices are wrong: 'The appraiser's fee, hourly rate and total hours spent on the assignment' is not a USPAP minimum requirement. 'The names and license numbers of every comparable property's appraiser' is incorrect; the source of comparable data must be disclosed, but not necessarily the original appraiser's license. 'A guarantee that the value will hold for at least ninety days after signing' is prohibited; appraisals are opinions as of a specific date, not guarantees. Exam tip: Scope of work is a core disclosure. Memorize the minimum report requirements in Std 2-2(a).
Why This Is the Correct Answer
Why this is correct: USPAP Standards Rule 2-2(a)(vii) requires every written appraisal report to state the scope of work used to develop the opinions and conclusions. This disclosure allows intended users to assess the sufficiency of the work. Why the other choices are wrong: 'The appraiser's fee, hourly rate and total hours spent on the assignment' is not a USPAP minimum requirement. 'The names and license numbers of every comparable property's appraiser' is incorrect; the source of comparable data must be disclosed, but not necessarily the original appraiser's license. 'A guarantee that the value will hold for at least ninety days after signing' is prohibited; appraisals are opinions as of a specific date, not guarantees. Exam tip: Scope of work is a core disclosure. Memorize the minimum report requirements in Std 2-2(a).
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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