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.
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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