Which describes a personal inspection?
Correct Answer
A) Physical observation to gather information about property characteristics
A personal inspection is physical observation used to gather information about property characteristics. It is not by itself a completed appraisal and does not define the entire research-and-analysis scope. The engagement party and extraordinary assumption are separate concepts.
Why This Is the Correct Answer
Option A is correct because USPAP defines a personal inspection as the appraiser's in-person observation of the subject property performed as part of the scope of work. That is physical observation to gather information about property characteristics. It is one part of the scope of work, not the whole assignment.
Why the Other Options Are Wrong
Option B: The entire research-and-analysis scope
Option B is wrong because the entire research-and-analysis scope describes the scope of work, of which an inspection may be only one part.
Option C: The party engaging the appraiser
Option C is wrong because the party engaging the appraiser is the client, not an inspection.
Option D: An uncertain premise about the property used in place of direct observation
Option D is wrong because an uncertain premise about the property used in place of direct observation describes an extraordinary assumption, which is the opposite of observing the property in person.
Personal means in person
A personal inspection is the appraiser physically looking at the property, nothing more and nothing less.
How to use: Use this to separate inspection from scope of work, client and assumption concepts.
Exam Tip
Match personal inspection to in-person physical observation, and treat it as one part of scope rather than the whole.
Common Mistakes to Avoid
- -Equating a personal inspection with the full scope of work
- -Confusing inspection with an extraordinary assumption
- -Thinking an inspection alone completes an appraisal
Concept Deep Dive
Analysis
This question tests the USPAP definition of personal inspection. A personal inspection is the appraiser's in-person observation of the subject, done as part of the scope of work. Distinguish it from the whole scope, the client and an extraordinary assumption.
Background Knowledge
The scope of work decides whether and how the appraiser inspects the subject. Inspections may be interior, exterior, or not performed, depending on the assignment. When the appraiser relies on information not personally observed, extraordinary assumptions may be needed.
Real-World Application
For a desktop assignment, an appraiser does not visit the home and relies on MLS photos and records. For a different assignment on the same street, the appraiser walks through the house and measures it, which is a personal inspection.
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