How does an appraiser handle a property data collection that omits a required characteristic?
Correct Answer
D) Obtain the information or expand the scope of work
Obtain the characteristic or other adequate evidence and modify the work as needed for credible results. A specific program-required data element cannot be excused merely by adding a disclaimer. If an extraordinary assumption is contemplated for genuine uncertainty, its use must be permitted, have a reasonable basis, and satisfy the applicable credibility and reporting conditions. Where credible, compliant completion cannot be achieved, do not deliver an unsupported opinion.
Why This Is the Correct Answer
Option D is correct because the appraiser should obtain the information or expand the scope of work. USPAP allows the appraiser to modify assignment conditions to gather the information, and it bars letting conditions limit the scope so much that results are not credible. A program-required data element cannot be excused by a disclaimer.
Why the Other Options Are Wrong
Option A: Estimate the missing item from the neighborhood
Option A is wrong because it estimates the missing item from the neighborhood. Neighborhood patterns do not establish the subject's own characteristic, and an unsupported estimate does not supply the required information.
Option B: Report the value with a general disclaimer attached
Option B is wrong because it reports the value with a general disclaimer attached. A disclaimer discloses the gap but does not provide the missing data or make the results credible.
Option C: Assume the item matches the assessor's record
Option C is wrong because it assumes the item matches the assessor's record. Public records can be incomplete or outdated, and an extraordinary assumption would require a reasonable basis and permission under the assignment conditions.
Missing item? Go get it
When required data is missing, the first move is to obtain it, not to estimate it, assume it, or disclaim it. Expanding the scope is how you get it.
How to use: Use this when a data collection or report is missing a required characteristic.
Exam Tip
Answers that fill gaps with neighborhood estimates, record assumptions or disclaimers are shortcuts; choose obtaining the information or expanding scope.
Common Mistakes to Avoid
- -Filling missing subject data with neighborhood norms
- -Assuming public records accurately describe the current property
- -Believing a disclaimer satisfies a program data requirement
Concept Deep Dive
Analysis
This question tests what to do when a property data collection is missing a required item. The appraiser obtains the characteristic or other adequate evidence and modifies the scope as needed for credible results. Estimating, assuming or disclaiming the missing item does not cure the gap.
Background Knowledge
When relevant information is missing because of assignment conditions, USPAP requires the appraiser to expand the scope, use a properly supported extraordinary assumption, or withdraw. Program requirements may also specify data elements that must be obtained.
Real-World Application
A property data report omits the number of bathrooms, which the program requires. The appraiser asks the collector or borrower for confirmed information and photos before completing the analysis.
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