Standards Rule 1-4 addresses:
Correct Answer
B) The approaches to value necessary for credible results
Why this is correct: Standards Rule 1-4 specifically addresses the development of the approaches to value. It requires the appraiser to develop the approaches necessary for credible results, not necessarily all three approaches. Why the other choices are wrong: 'The required retention period for the appraiser's workfile' is addressed in Standards Rule 1-5, not 1-4. 'The certification required in written reports' is governed by Standards Rule 2-3, not 1-4. 'The reviewer's obligations under Standard 3' is wrong; Standard 3 is for review appraisals, and SR 1 4 is part of Standard 1 for development. Exam tip: SR 1-4 is your go-to rule for questions about which valuation approaches must be developed.
Why This Is the Correct Answer
Why this is correct: Standards Rule 1-4 specifically addresses the development of the approaches to value. It requires the appraiser to develop the approaches necessary for credible results, not necessarily all three approaches. Why the other choices are wrong: 'The required retention period for the appraiser's workfile' is addressed in Standards Rule 1-5, not 1-4. 'The certification required in written reports' is governed by Standards Rule 2-3, not 1-4. 'The reviewer's obligations under Standard 3' is wrong; Standard 3 is for review appraisals, and SR 1 4 is part of Standard 1 for development. Exam tip: SR 1-4 is your go-to rule for questions about which valuation approaches must be developed.
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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