Must an appraiser report an opinion of exposure time in every assignment?
Correct Answer
B) Only where the value definition requires it
Why this is correct: An appraiser must report an opinion of exposure time only where the value definition requires it. For example, the definition of Market Value includes a reasonable exposure time, so an opinion is required. Other value definitions (e.g., Liquidation Value) may not, as the original explanation states. Why the other choices are wrong: It is not required in every appraisal without exception. It is not only when the client specifically requests it; the requirement stems from the value definition. Exposure time is sometimes reported; it is not never reported at all. Exam tip: Always check the definition of value used in the assignment. If it's Market Value, you must develop and report an opinion of exposure time.
Why This Is the Correct Answer
Why this is correct: An appraiser must report an opinion of exposure time only where the value definition requires it. For example, the definition of Market Value includes a reasonable exposure time, so an opinion is required. Other value definitions (e.g., Liquidation Value) may not, as the original explanation states. Why the other choices are wrong: It is not required in every appraisal without exception. It is not only when the client specifically requests it; the requirement stems from the value definition. Exposure time is sometimes reported; it is not never reported at all. Exam tip: Always check the definition of value used in the assignment. If it's Market Value, you must develop and report an opinion of exposure time.
More USPAP Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
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