Under SR 1-2(h), what must an appraiser determine when developing a real-property appraisal?
Correct Answer
C) The scope of work necessary to produce credible assignment results
Determine the scope of work necessary to produce credible assignment results in accordance with the SCOPE OF WORK RULE. This decision follows and interacts with identification of the appraisal problem and may need revision as facts emerge. Identifying users or extraordinary assumptions and reconciling data are other responsibilities; they do not replace the necessary scope determination.
Why This Is the Correct Answer
Option C is correct because SR 1-2(h) requires the appraiser to determine the scope of work necessary to produce credible assignment results in accordance with the SCOPE OF WORK RULE. This determination follows from and interacts with identification of the appraisal problem. It may need revision as new facts emerge during the assignment.
Why the Other Options Are Wrong
Option A: Identify the client and any other intended users of the appraisal
Option A, identifying the client and any other intended users, is a real development duty, but it is a separate identification step from SR 1-2(h). It does not replace the scope of work determination.
Option B: Identify any extraordinary assumptions necessary in the assignment
Option B, identifying any extraordinary assumptions necessary in the assignment, is also a separate identification step. It is not the scope of work determination required at SR 1-2(h).
Option D: Reconcile the quality and quantity of data within the approaches used
Option D, reconciling the quality and quantity of data within the approaches used, is a reconciliation task performed later in development. It is not the problem-identification item at SR 1-2(h).
Identify First, Then Scope
SR 1-2 walks through identifying the problem and then calls for deciding how much work is needed. Problem identification leads into the scope of work.
How to use: Use this to recall that SR 1-2(h) is the scope of work determination rather than another identification task.
Exam Tip
Distinguish identifying parts of the appraisal problem from determining the scope of work. Reconciliation belongs to a later development stage.
Common Mistakes to Avoid
- -Treating scope of work as fixed once the engagement is accepted
- -Confusing SR 1-2 identification steps with reconciliation of data and approaches
- -Assuming identifying extraordinary assumptions is the same as determining scope of work
Concept Deep Dive
Analysis
This question tests knowledge of the specific item listed at SR 1-2(h) in the problem-identification steps of Standard 1. SR 1-2 lists several identification duties, and item (h) is the scope of work determination. You need to match (h) to scope of work rather than to other identification tasks or to reconciliation.
Background Knowledge
SR 1-2 requires the appraiser to identify the elements of the appraisal problem, such as the client and intended users, intended use, type and definition of value, effective date, relevant characteristics and assignment conditions. With the problem identified, the appraiser determines the scope of work needed for credible results. The SCOPE OF WORK RULE governs that determination.
Real-World Application
An appraiser engaged for a lending appraisal of a rural property identifies the client, intended use and relevant characteristics. Based on that, the appraiser decides an expanded search for comparable sales and research into easements is needed for credible results. When a title report later reveals an additional easement, the appraiser revises the scope of work.
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