The effective date of an appraisal differs from the report date in that the effective date:
Correct Answer
B) Establishes the point in time to which the value opinion applies
Why this is correct: The effective date is the specific date to which the appraiser's opinion of value applies, based on market conditions at that time. The report date is when the appraisal report is issued. Why the other choices are wrong: "Is always the same calendar day the appraiser inspected the property" is false; the inspection date and effective date can differ. "Marks the deadline by which the client must act on the conclusion" is not a function of the effective date. "Is set by the lender to match the anticipated loan closing schedule" confuses the effective date with a closing date; the appraiser sets the effective date based on assignment conditions. Exam tip: The value opinion is 'as of' the effective date. The report is 'as of' the report date. Always state both clearly.
Why This Is the Correct Answer
Why this is correct: The effective date is the specific date to which the appraiser's opinion of value applies, based on market conditions at that time. The report date is when the appraisal report is issued. Why the other choices are wrong: "Is always the same calendar day the appraiser inspected the property" is false; the inspection date and effective date can differ. "Marks the deadline by which the client must act on the conclusion" is not a function of the effective date. "Is set by the lender to match the anticipated loan closing schedule" confuses the effective date with a closing date; the appraiser sets the effective date based on assignment conditions. Exam tip: The value opinion is 'as of' the effective date. The report is 'as of' the report date. Always state both clearly.
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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