What distinguishes an appraisal review from an appraisal?
Correct Answer
A) A review develops an opinion about other appraisal work
Why this is correct: An appraisal review assignment involves developing an opinion about the quality of another appraiser's work (e.g., its completeness, accuracy, and compliance). It is distinct from developing an original opinion of value, though a review may sometimes include one. Why the other choices are wrong: "A review may only be performed by a state regulator" is false; qualified appraisers perform reviews. "A review never results in an opinion of value" is incorrect; some reviews do develop a value opinion. "A review requires no workfile to be retained" violates USPAP record-keeping rules. Exam tip: A review evaluates another's work; an appraisal develops value.
Why This Is the Correct Answer
Why this is correct: An appraisal review assignment involves developing an opinion about the quality of another appraiser's work (e.g., its completeness, accuracy, and compliance). It is distinct from developing an original opinion of value, though a review may sometimes include one. Why the other choices are wrong: "A review may only be performed by a state regulator" is false; qualified appraisers perform reviews. "A review never results in an opinion of value" is incorrect; some reviews do develop a value opinion. "A review requires no workfile to be retained" violates USPAP record-keeping rules. Exam tip: A review evaluates another's work; an appraisal develops value.
More USPAP Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
A client sends comments disputing the appraiser's adjustment for condition. What is the appropriate response?
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