Standards Rule 1-6 addresses the appraiser's obligation to:
Correct Answer
C) Reconcile the quality and quantity of data and the approaches used
SR 1-6 requires reconciliation of the quality and quantity of data within the approaches and of the applicability and relevance of the approaches, methods and techniques used to reach the value conclusion. This is development analysis, not merely report formatting or an automatic arithmetic average. Workfile retention is governed separately. The ETHICS RULE does not impose a universal disclosure of every ordinary assignment fee merely because certain procurement-payment disclosures exist.
Why This Is the Correct Answer
Option C is correct because SR 1-6 requires the appraiser to reconcile the quality and quantity of data available and analyzed within the approaches used, and to reconcile the applicability and relevance of the approaches, methods and techniques used to arrive at the value conclusion. This is analytical development work, not a simple average.
Why the Other Options Are Wrong
Option A: Retain the workfile for the required period
Option A, retaining the workfile for the required period, is governed by the Record Keeping Rule, not by SR 1-6.
Option B: Deliver the completed report within the timeframe agreed with the client
Option B, delivering the report within the timeframe agreed with the client, is a matter of the engagement terms, not a requirement of SR 1-6's reconciliation step.
Option D: Disclose the fee arrangement to intended users
Option D, disclosing the fee arrangement to intended users, is not what SR 1-6 addresses, and USPAP does not impose a general duty to disclose every ordinary assignment fee.
Six settles the value
SR 1-6 is where the appraiser settles the indications into one conclusion by weighing data and approaches.
How to use: Use this to link SR 1-6 to reconciliation when a question cites the rule number.
Exam Tip
Match Standard 1 rule numbers to development steps; reconciliation is the final development step, SR 1-6.
Common Mistakes to Avoid
- -Treating reconciliation as a simple arithmetic average of the approaches
- -Confusing SR 1-6 with record keeping requirements
- -Thinking SR 1-6 is a reporting or delivery rule
Concept Deep Dive
Analysis
This question tests what Standards Rule 1-6 covers. SR 1-6 is the reconciliation step in development: weighing the quality and quantity of data within the approaches and the applicability and relevance of the approaches, methods and techniques used.
Background Knowledge
Standard 1 covers the development of a real property appraisal, ending with reconciliation in SR 1-6. Reconciliation requires judgment about how reliable and relevant each approach and its data are, rather than mechanically averaging indicated values.
Real-World Application
An appraiser has sales comparison and cost approach indications for a new home. Under SR 1-6, the appraiser explains why the sales comparison approach gets more weight given strong comparable data and why the cost approach supports the conclusion.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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