How does an alternative inspection method affect the appraiser's disclosure obligations?
Correct Answer
A) The method used and its extent must be described
Why this is correct: USPAP's reporting standards require a clear disclosure of the scope of work, including the extent of the inspection. If an alternative inspection method (e.g., desktop, hybrid, use of third-party data) is used, the report must describe the method and its extent so readers understand the basis for the appraisal. Why the other choices are wrong: No disclosure is needed if the client requested it is false; client request explains the scope but does not eliminate the disclosure requirement. Only a personal inspection requires description is incorrect; any inspection method must be described. The method is recorded in the workfile but not reported violates the requirement for clear reporting. Exam tip: Always disclose the inspection method and extent in the report.
Why This Is the Correct Answer
Scope of work disclosure requires describing the inspection method actually used and its extent, since a reader cannot evaluate the conclusion without knowing what the analysis rests on.
Why the Other Options Are Wrong
Option B: No disclosure is needed if the client requested it
Disclosure exists for the reader rather than the client, so a client's request does not remove the obligation.
Option C: Only a personal inspection requires description
The obligation covers whatever method was used. An alternative method requires description just as a personal inspection does.
Option D: The method is recorded in the workfile but not reported
The workfile is not communicated to intended users, so documenting there informs nobody relying on the report.
Say What You Actually Saw
Say What You Actually Saw, and how. The reader is evaluating your conclusion against your access.
How to use: Describe method and extent together — exterior only, third-party collected, photographs supplied — plus any limitation it created.
Exam Tip
Relying on a third-party data collector usually generates an extraordinary assumption about the accuracy of what was collected, requiring its own disclosure.
Common Mistakes to Avoid
- -Omitting the description because the client arranged the method
- -Describing only that an inspection occurred without its extent
- -Relying on the workfile to record the method
Concept Deep Dive
Analysis
The scope of work an appraiser performs is a required disclosure, and the inspection is one of its most consequential components. Whether the appraiser walked the property, viewed the exterior only, relied on a third-party data collector, worked from photographs supplied by the borrower, or used no inspection at all changes what the analysis rests on, and a reader cannot evaluate the conclusion without knowing which. So the report must describe the method used and its extent, including any limitations the method imposed. Three arguments for not disclosing are all wrong for the same underlying reason: disclosure exists for the reader rather than for the client, so a client's request does not remove it; the obligation covers whatever method was used rather than only personal inspection; and the workfile is not communicated to intended users, so documenting there informs nobody who relies on the report. Where the inspection method limits the analysis, the extraordinary assumptions that follow must also be disclosed.
Background Knowledge
USPAP requires disclosure of the scope of work performed, including the extent of any property inspection. Where the method limits the analysis, associated extraordinary assumptions must also be disclosed.
Real-World Application
An appraiser using a third-party property data collector describes the arrangement, the data received, and the extraordinary assumption regarding its accuracy.
More Emerging Methods Questions
A collector's photographs show a condition the appraiser believes needs specialist assessment. What is the appropriate step?
What responsibility does an appraiser retain for an error originating in a third-party database?
Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
Which assignment type still requires the appraiser to develop an opinion of value?
A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
What does it mean that a tool cannot comply with USPAP?
An appraiser is asked to review an assignment where an AVM supplied the value. What does the review examine?
Why is the date a data extract was pulled worth recording in the workfile?
A desktop appraisal is best described as an assignment completed how?
How does the scope of work rule apply when a lender requests a desktop assignment?
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