Standard 1 requires the appraiser to identify the problem before solving it. Which elements define the appraisal problem?
Correct Answer
B) Users, use, value type, effective date, property, and assignment conditions
Why this is correct: Standard 1 requires identifying the appraisal problem by determining intended users, intended use, type of value, effective date, property characteristics, and assignment conditions, as stated originally. Why the other choices are wrong: "The negotiated fee, the delivery deadline and the required report format" are logistical details, not the core problem. "The subject's address and the loan number" are identifiers, not the problem definition. "The comparable pool and the adjustment grid" are analytical steps, not the initial problem. Exam tip: Start every assignment by defining the six key elements of the appraisal problem.
Why This Is the Correct Answer
Why this is correct: Standard 1 requires identifying the appraisal problem by determining intended users, intended use, type of value, effective date, property characteristics, and assignment conditions, as stated originally. Why the other choices are wrong: "The negotiated fee, the delivery deadline and the required report format" are logistical details, not the core problem. "The subject's address and the loan number" are identifiers, not the problem definition. "The comparable pool and the adjustment grid" are analytical steps, not the initial problem. Exam tip: Start every assignment by defining the six key elements of the appraisal problem.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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