What should an appraiser do when the property data supplied appears internally inconsistent?
Correct Answer
B) Resolve it, or expand the scope of work as needed
Why this is correct: USPAP requires credible assignment results. Inconsistent data undermines credibility. The appraiser must therefore resolve the inconsistency, which may require expanding the scope of work (e.g., seeking additional data, verifying sources) to ensure a reliable basis for the appraisal. Why the other choices are wrong: "Use the portion that supports the value conclusion" is wrong because it introduces bias and ignores contradictory information. "Complete the report and note the client's data was poor" is wrong because simply noting poor data does not resolve the problem; the appraiser must still produce a credible opinion. "Average the conflicting measurements before proceeding" is wrong because averaging arbitrary numbers without resolving the true value is not a professional methodology. Exam tip: You cannot ignore contradictory data; you must resolve it or do more work.
Why This Is the Correct Answer
Why this is correct: USPAP requires credible assignment results. Inconsistent data undermines credibility. The appraiser must therefore resolve the inconsistency, which may require expanding the scope of work (e.g., seeking additional data, verifying sources) to ensure a reliable basis for the appraisal. Why the other choices are wrong: "Use the portion that supports the value conclusion" is wrong because it introduces bias and ignores contradictory information. "Complete the report and note the client's data was poor" is wrong because simply noting poor data does not resolve the problem; the appraiser must still produce a credible opinion. "Average the conflicting measurements before proceeding" is wrong because averaging arbitrary numbers without resolving the true value is not a professional methodology. Exam tip: You cannot ignore contradictory data; you must resolve it or do more work.
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Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
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How should an appraiser respond to a client requesting a shorter turn time than credible results allow?
Which assignment type still requires the appraiser to develop an opinion of value?
An appraiser relies on a published capitalization rate survey. What must be considered?
A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
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