A reviewer uses an unfamiliar analytical technique in developing an appraisal review. What does SR 3-1 require?
Correct Answer
C) Understand and correctly employ the methods necessary for a credible appraisal review
SR 3-1 requires the reviewer to understand and correctly employ methods and techniques necessary for a credible review, avoid substantial errors that significantly affect the review, and avoid careless or negligent service. SR 3-2 separately addresses review-problem identification. The existence of an original appraisal or a client instruction does not discharge these development responsibilities.
Why This Is the Correct Answer
Option C is correct because SR 3-1(a) requires the reviewer to be aware of, understand, and correctly employ those methods and techniques necessary to produce a credible appraisal review. An unfamiliar technique does not lower that bar; the reviewer must learn it well enough to apply it correctly. A client request or the existence of the original appraisal does not replace this duty.
Why the Other Options Are Wrong
Option A: Average the original approach indications instead of performing review analysis
Option A says to average the original approach indications instead of performing review analysis. Averaging the original indications is not a review; the reviewer must develop a credible review using appropriate methods.
Option B: Assume any technique is acceptable once a client requests it in writing
Option B says any technique is acceptable once a client requests it in writing. A client request does not make a technique appropriate; the reviewer must use methods necessary for a credible review.
Option D: Treat review as exempt from substantial-error and negligence requirements
Option D says review is exempt from substantial-error and negligence requirements. SR 3-1 includes those same duties for reviewers, so review work is not exempt.
Reviewers meet the same bar
SR 3-1 holds reviewers to the same competence duties SR 1-1 holds appraisers: know it, understand it, use it correctly.
How to use: Use this when a question asks what rules apply to the development of an appraisal review.
Exam Tip
Remember that SR 3-1 parallels SR 1-1; if an answer exempts reviewers from error or negligence duties, it is wrong.
Common Mistakes to Avoid
- -Assuming a client's written request makes any technique acceptable
- -Thinking reviewers are held to a lower standard than appraisers
- -Treating a review as a simple average of the original results
Concept Deep Dive
Analysis
This question tests the development duties in SR 3-1 for appraisal review. A reviewer using an unfamiliar technique must be aware of, understand, and correctly employ the methods and techniques necessary to produce a credible appraisal review. The reviewer must also avoid substantial errors and careless or negligent service.
Background Knowledge
Standard 3 governs appraisal review development and reporting. SR 3-1 mirrors SR 1-1 by requiring correct methods, no substantial errors, and no careless or negligent work. SR 3-2 covers identifying the review problem, such as the client, intended use, and the work under review.
Real-World Application
A reviewer receives an appraisal that uses a regression analysis technique the reviewer has not used before. Before judging it, the reviewer studies the method enough to understand and correctly evaluate its application, rather than accepting or rejecting it without understanding.
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