Standards Rule 1-3 requires the appraiser, when necessary for credible results, to:
Correct Answer
A) Identify and analyze market conditions and highest and best use
Why this is correct: Standards Rule 1-3 specifically states that when necessary for credible assignment results, an appraiser must identify and analyze the subject property's market conditions and highest and best use. This analysis is foundational for a market value opinion. Why the other choices are wrong: "Interview the property's current occupants" may be part of data collection but is not a specific requirement of SR 1-3. "Photograph every comparable property from four separate angles" is not a USPAP requirement. "Verify the client's financing arrangements" is not addressed in SR 1-3. Exam tip: SR 1-3 is the market analysis and highest and best use rule. Know it by its core mandate.
Why This Is the Correct Answer
Why this is correct: Standards Rule 1-3 specifically states that when necessary for credible assignment results, an appraiser must identify and analyze the subject property's market conditions and highest and best use. This analysis is foundational for a market value opinion. Why the other choices are wrong: "Interview the property's current occupants" may be part of data collection but is not a specific requirement of SR 1-3. "Photograph every comparable property from four separate angles" is not a USPAP requirement. "Verify the client's financing arrangements" is not addressed in SR 1-3. Exam tip: SR 1-3 is the market analysis and highest and best use rule. Know it by its core mandate.
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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