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.
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