What is the appropriate use of a published cost service in the cost approach?
Correct Answer
C) As a source requiring local adjustment and judgment
Why this is correct: Published cost services provide general data that must be adjusted for local conditions, quality class, and specific property features through the appraiser's judgment. Why the other choices are wrong: They are not a substitute for local market analysis. They cannot be the sole support for depreciation without analysis. They must not be adopted without examination. Exam tip: Cost service figures are starting points requiring local adjustment and professional judgment.
Why This Is the Correct Answer
Why this is correct: Published cost services provide general data that must be adjusted for local conditions, quality class, and specific property features through the appraiser's judgment. Why the other choices are wrong: They are not a substitute for local market analysis. They cannot be the sole support for depreciation without analysis. They must not be adopted without examination. Exam tip: Cost service figures are starting points requiring local adjustment and professional judgment.
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?
What responsibility does an appraiser retain for an error originating in a third-party database?
Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
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?
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