How does the intended use of an appraisal bear on how much statistical support is needed?
Correct Answer
D) Scope of work follows what credible results require
Why this is correct: Scope of work follows what credible results require. The governing concept is the USPAP Scope of Work Rule, which requires the appraiser to perform sufficient analysis to produce credible results for the intended use. More complex uses (e.g., litigation) may require more statistical support. Why the other choices are wrong: It does not; the same support is always required is wrong because scope of work is flexible based on intended use. More support is needed only for commercial work is wrong; the need depends on the assignment's complexity, not property type. Support requirements are fixed by state regulation is wrong; while states may have rules, USPAP's scope of work is fundamental. Exam tip: The intended use dictates the necessary scope of work and depth of analysis; this must be judged and disclosed in every assignment.
Why This Is the Correct Answer
Why this is correct: Scope of work follows what credible results require. The governing concept is the USPAP Scope of Work Rule, which requires the appraiser to perform sufficient analysis to produce credible results for the intended use. More complex uses (e.g., litigation) may require more statistical support. Why the other choices are wrong: It does not; the same support is always required is wrong because scope of work is flexible based on intended use. More support is needed only for commercial work is wrong; the need depends on the assignment's complexity, not property type. Support requirements are fixed by state regulation is wrong; while states may have rules, USPAP's scope of work is fundamental. Exam tip: The intended use dictates the necessary scope of work and depth of analysis; this must be judged and disclosed in every assignment.
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