Under USPAP 2024, which pair are the written real-property appraisal reporting options?
Correct Answer
D) Appraisal Report and Restricted Appraisal Report
Standard 2 provides two written real-property appraisal reporting options: Appraisal Report and Restricted Appraisal Report. Select and identify the appropriate option; differing content does not mean differing required development credibility. Oral reporting is addressed separately.
Why This Is the Correct Answer
Option D is correct because USPAP states that each written real property appraisal report must be prepared under one of two options and prominently state which is used: Appraisal Report or Restricted Appraisal Report. These are the only written reporting options for real property. Oral reports are addressed separately.
Why the Other Options Are Wrong
Option A: Self-Contained Report and Summary Report only
Option A is wrong because Self-Contained Report and Summary Report are former option names that are no longer the USPAP written reporting options.
Option B: Narrative Report and Uniform Residential Appraisal Report
Option B is wrong because a narrative report and the Uniform Residential Appraisal Report describe report styles or a form, not the USPAP reporting options.
Option C: Desktop Appraisal and Hybrid Appraisal Report
Option C is wrong because Desktop Appraisal and Hybrid Appraisal describe assignment types or data-collection methods, not USPAP reporting options.
Two options: full and restricted
Think of one standard Appraisal Report and its restricted sibling. There are just two written options.
How to use: Use this when asked to name the USPAP written real property reporting options.
Exam Tip
Watch for outdated option names and form names; the current pair both include the words Appraisal Report.
Common Mistakes to Avoid
- -Using the outdated Self-Contained and Summary names
- -Treating a form name as a USPAP reporting option
- -Confusing desktop or hybrid assignment types with reporting options
Concept Deep Dive
Analysis
This question tests the names of USPAP's written real property reporting options. Older names, form names and assignment types appear as distractors. The current options are the Appraisal Report and the Restricted Appraisal Report.
Background Knowledge
Under STANDARD 2, every written real property appraisal report is either an Appraisal Report or a Restricted Appraisal Report. The report must prominently state which option is used. Forms and assignment styles can fit within either option but are not options themselves.
Real-World Application
An appraiser completes a lender form report for a single-family loan. The form is prepared under the Appraisal Report option, and the report states that option.
More USPAP Questions
In a cost approach for an improved property, an appraiser estimates site value by sales comparison, allocation and extraction, then settles on one site-value figure before final reconciliation. How is this step best described?
An extraordinary assumption was reasonably supported, properly used and disclosed in an appraisal report. Later, the assumed information is found to be false. Which conclusion is best supported?
An otherwise applicable valuation approach cannot be developed reliably from the available data. The remaining scope can produce credible assignment results. What should the appraiser do?
May an appraiser use a hypothetical condition in any assignment?
An appraisal has a current effective date and permits an extraordinary assumption if its requirements are met. Which situation involves uncertain information rather than a fact known to be contrary to reality on that date?
Why must a report identify any real property interest that is being excluded from the value opinion?
Which review best helps explain divergent cost, sales-comparison and income indications?
Two value indications are $340,000 and $392,000. What is the difference as a percentage of the lower indication, rounded to one decimal place?
An unauthorized third party requests a lender-client’s report. No due-process or other permitted disclosure exception applies. How should the appraiser respond?
An appraiser proposes to assume there are no hidden defects. Which fact would characterize that assumption as extraordinary under the USPAP 2024 definition, rather than justify dismissing it as routine boilerplate?
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
Previous Question
On a Fannie Mae appraisal report form, the approach indications are $455,000 and $472,000, and the appraiser writes in the Reconciliation section that the value is 'between $455,000 and $472,000.' What is the problem?
Next Question
Three approach indications are $401,000, $412,000 and $438,000. What is their median as a numerical summary?