An appraiser evaluates the adequacy of another appraiser’s analysis and report, without being engaged to develop a separate value opinion. Which service is described?
Correct Answer
B) An appraisal review focused on the quality of another appraiser’s work
An appraisal review develops an opinion about the quality of another appraiser’s work performed in an appraisal or appraisal-review assignment. An appraisal develops an opinion of value. A review can include the reviewer’s own value opinion when the assignment calls for it, but reviewing work quality does not automatically require a replacement value conclusion.
Why This Is the Correct Answer
Option B is correct because USPAP defines appraisal review as developing an opinion about the quality of another appraiser's work, such as a report, part of a report or a workfile, performed as part of an appraisal or appraisal review assignment. Evaluating adequacy without developing a separate value opinion fits that definition exactly.
Why the Other Options Are Wrong
Option A: A new property appraisal, since the reviewer reads the original report
Option A calls this a new property appraisal because the reviewer reads the original report. Reading another report does not make the work an appraisal; an appraisal develops an opinion of value, which the reviewer here was not engaged to do.
Option C: An automatic new property appraisal replacing the original value
Option C claims the service is an automatic new appraisal replacing the original value. A review of work quality does not automatically produce a replacement value; a reviewer develops their own value only when the assignment calls for it.
Option D: A mass appraisal, since multiple pages of work are analyzed
Option D labels it a mass appraisal because multiple pages are analyzed. Mass appraisal is the valuation of a universe of properties using standardized methods, and the length of the work reviewed has nothing to do with it.
Review rates the work
An appraisal values the property; a review rates the work. If the target of the opinion is someone else's report or workfile, it is a review.
How to use: Use this to classify any scenario where one appraiser examines another appraiser's report.
Exam Tip
Ask what the opinion is about: property value points to appraisal, quality of another appraiser's work points to appraisal review.
Common Mistakes to Avoid
- -Assuming any appraiser who reads a report is performing a new appraisal
- -Believing a review must produce a replacement value conclusion
- -Confusing review work with mass appraisal
Concept Deep Dive
Analysis
This question tests the difference between an appraisal and an appraisal review. When the work being judged is another appraiser's analysis and report, and the reviewer is not engaged to develop a separate value, the service is an appraisal review.
Background Knowledge
USPAP separates services by what opinion is developed. An appraisal develops an opinion of value, while an appraisal review develops an opinion about the quality of another appraiser's work. A review may include the reviewer's own value opinion when that is part of the assignment.
Real-World Application
A lender's quality-control department hires an appraiser to check whether a recent residential report is adequately supported. The appraiser examines the report and workfile and issues an opinion on its quality without developing a new value, which is an appraisal review assignment.
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?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Related Tools
Previous Question
In a nonfederal assignment, a binding applicable law actually precludes compliance with one identified USPAP requirement. What is the appropriate treatment?
Next Question
Contamination is uncertain as of the effective date. The appraiser has a reasonable basis to assume the site is uncontaminated; that premise could affect the value conclusion. What assignment condition is being used?