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 statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
An appraiser runs only the sales comparison approach on a standard tract home and omits the cost and income approaches. Under Standard 1 this is:
A value opinion for a subdivision as if fully built out two years from now is what kind of assignment, and what does it require?
A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
An appraiser must disclose in the certification whether they have:
A client-imposed requirement — 'use only comps from our approved list' — is best described as:
Under Standard 1, when developing a real property appraisal, an appraiser must:
The certification required by Standards Rule 2-3 must be signed by:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
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