When an approach to value is not developed, what does Standard 2 require of the report?
Correct Answer
C) The exclusion and the reason to be stated
Why this is correct: When an approach to value is not developed, USPAS Standards require the appraisal report to state that the approach was excluded and the reason for its exclusion. This is part of disclosing the scope of work. Why the other choices are wrong: The client's written waiver of that approach is not required by USPAS, though client agreement may be part of the assignment. A separate letter explaining the decision is not mandated; the reason must be in the report itself. A reduction in the fee charged for the work is a business decision, not a Standard requirement. Exam tip: Any departure from developing an approach requires a statement and reason in the report.
Why This Is the Correct Answer
Why this is correct: When an approach to value is not developed, USPAS Standards require the appraisal report to state that the approach was excluded and the reason for its exclusion. This is part of disclosing the scope of work. Why the other choices are wrong: The client's written waiver of that approach is not required by USPAS, though client agreement may be part of the assignment. A separate letter explaining the decision is not mandated; the reason must be in the report itself. A reduction in the fee charged for the work is a business decision, not a Standard requirement. Exam tip: Any departure from developing an approach requires a statement and reason in the report.
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Which of the following is a written report option named in the current edition of USPAP?
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