Standards Rule 1-1 requires an appraiser to avoid:
Correct Answer
B) A substantial omission or commission error affecting the appraisal
SR 1-1(b) addresses a substantial omission or commission error that significantly affects the appraisal. SR 1-1(a) concerns proper methods and SR 1-1(c) careless or negligent performance. There is no universal USPAP maximum of three comparable sales.
Why This Is the Correct Answer
Option B is correct because SR 1-1(b) states that the appraiser must not commit a substantial error of omission or commission that significantly affects an appraisal. Related parts of SR 1-1 address proper methods and careless or negligent performance.
Why the Other Options Are Wrong
Option A: Using more than three comparable sales in the sales comparison grid
Option A says SR 1-1 requires avoiding the use of more than three comparable sales in the grid. USPAP sets no maximum of three comparable sales; using more can strengthen the analysis.
Option C: Consulting a recognized national cost service for replacement cost
Option C says to avoid consulting a recognized national cost service for replacement cost. Cost services are a common, accepted data source in the cost approach, and SR 1-1 does not prohibit them.
Option D: Developing more than one applicable approach to value in a report
Option D says to avoid developing more than one applicable approach to value. Developing multiple applicable approaches is permitted and often supports credible results.
Do it right, miss nothing big
SR 1-1 asks the appraiser to use correct methods, avoid substantial errors of omission or commission, and avoid careless work.
How to use: Use this to recall the core development requirements in SR 1-1.
Exam Tip
Options that set arbitrary numerical limits, like a maximum number of comparables, are often not USPAP requirements.
Common Mistakes to Avoid
- -Believing USPAP caps the number of comparable sales
- -Thinking only one approach to value may be developed
- -Treating standard cost services as unacceptable sources
Concept Deep Dive
Analysis
This question tests Standards Rule 1-1, which sets general development requirements for real property appraisals. SR 1-1(b) requires the appraiser to avoid a substantial error of omission or commission that significantly affects an appraisal. The wrong options describe permitted practices presented as prohibitions.
Background Knowledge
SR 1-1 requires the appraiser to be aware of and correctly employ recognized methods, avoid substantial errors of omission or commission, and avoid rendering services in a careless or negligent manner. Errors that individually may not significantly affect results can still matter if a series of them, taken together, affects credibility. These rules focus on the quality of development work.
Real-World Application
An appraiser overlooks that the subject has an unpermitted addition counted in the living area, overstating the value. This omission significantly affects the appraisal and is the type of substantial error SR 1-1 requires appraisers to avoid.
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