Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
Correct Answer
B) Information, not an assignment result
Why this is correct: USPAP considers an AVM output as data or information until an appraiser analyzes it and forms their own opinion. The appraiser's conclusion is the assignment result. Why the other choices are wrong: 'An appraisal, provided the model is approved' is incorrect; only a person can perform an appraisal. 'An assignment result the appraiser must adopt' would violate independence. 'An evaluation that satisfies the lender's need' misstates the AVM's role. Exam tip: AVM output = information; appraiser's analysis = appraisal. The appraiser must independently verify and interpret AVM data.
Why This Is the Correct Answer
Why this is correct: USPAP considers an AVM output as data or information until an appraiser analyzes it and forms their own opinion. The appraiser's conclusion is the assignment result. Why the other choices are wrong: 'An appraisal, provided the model is approved' is incorrect; only a person can perform an appraisal. 'An assignment result the appraiser must adopt' would violate independence. 'An evaluation that satisfies the lender's need' misstates the AVM's role. Exam tip: AVM output = information; appraiser's analysis = appraisal. The appraiser must independently verify and interpret AVM data.
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