Which activity describes an appraisal review?
Correct Answer
A) Evaluating the quality of another appraiser’s appraisal-related work
An appraisal review evaluates the quality of another appraiser’s appraisal-related work. It can cover a report, workfile or part of the work, and may also include a value opinion; developing value alone describes appraisal.
Why This Is the Correct Answer
Option A is correct because USPAP defines appraisal review as the act or process of developing an opinion about the quality of another appraiser's work, such as a report, part of a report, a workfile or a combination. The review may also include the reviewer's own value opinion when within scope. Evaluating the quality of another appraiser's appraisal-related work is the defining feature.
Why the Other Options Are Wrong
Option B: Estimating a property value without evaluating another appraiser’s work
Option B describes estimating a property value without evaluating another appraiser's work. Developing a value opinion alone is an appraisal, not an appraisal review.
Option C: Recording a deed at the county without any valuation analysis
Option C describes recording a deed at the county without valuation analysis. Recording a deed is an administrative act and involves no opinion about another appraiser's work.
Option D: Calculating a tax bill without evaluating appraisal work
Option D describes calculating a tax bill without evaluating appraisal work. A tax calculation does not assess the quality of another appraiser's work, so it is not an appraisal review.
Review judges another's work
An appraisal review judges the quality of someone else's appraisal work; an appraisal estimates value.
How to use: Use this to tell an appraisal review apart from other valuation-related activities.
Exam Tip
Look for the phrase about the quality of another appraiser's work. Without that element, the activity is not an appraisal review.
Common Mistakes to Avoid
- -Calling any value estimate an appraisal review
- -Thinking a review must include a new value opinion
- -Forgetting that a review can cover a workfile or part of a report
Concept Deep Dive
Analysis
This question tests the USPAP definition of appraisal review. An appraisal review develops an opinion about the quality of another appraiser's work. Activities that do not evaluate another appraiser's work are not appraisal reviews.
Background Knowledge
USPAP defines both appraisal (an opinion of value) and appraisal review (an opinion about the quality of another appraiser's work). Appraisal reviews are developed under Standard 3 and reported under Standard 4.
Real-World Application
A lender hires an appraiser to evaluate whether a prior appraisal of a single-family house was credible. The reviewer examines the report and workfile and gives an opinion on their quality, which is an appraisal review.
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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