The Scope of Work Rule requires the appraiser to determine and perform the scope of work necessary to:
Correct Answer
C) Develop credible assignment results
Why this is correct: The USPAP Scope of Work Rule requires the appraiser to determine and perform the scope of work necessary to produce assignment results that are credible for the intended use. Credibility is the benchmark. Why the other choices are wrong: 'Satisfy the most exhaustive standard available' is wrong; the scope must be appropriate, not necessarily the most exhaustive. 'Match the fee the client agreed to pay' is wrong; fee cannot dictate the necessary scope. 'Meet the shortest timeline the client requests' is wrong; timeline cannot compromise the necessary scope. Exam tip: Scope of work is driven by the need for credible results, not by client constraints like fee or deadline.
Why This Is the Correct Answer
Why this is correct: The USPAP Scope of Work Rule requires the appraiser to determine and perform the scope of work necessary to produce assignment results that are credible for the intended use. Credibility is the benchmark. Why the other choices are wrong: 'Satisfy the most exhaustive standard available' is wrong; the scope must be appropriate, not necessarily the most exhaustive. 'Match the fee the client agreed to pay' is wrong; fee cannot dictate the necessary scope. 'Meet the shortest timeline the client requests' is wrong; timeline cannot compromise the necessary scope. Exam tip: Scope of work is driven by the need for credible results, not by client constraints like fee or deadline.
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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