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.
More Emerging Methods Questions
How does an alternative inspection method affect the appraiser's disclosure obligations?
A collector's photographs show a condition the appraiser believes needs specialist assessment. What is the appropriate step?
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Which assignment type still requires the appraiser to develop an opinion of value?
A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
What does it mean that a tool cannot comply with USPAP?
An appraiser is asked to review an assignment where an AVM supplied the value. What does the review examine?
Why is the date a data extract was pulled worth recording in the workfile?
A desktop appraisal is best described as an assignment completed how?
How does the scope of work rule apply when a lender requests a desktop assignment?
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