When must an appraiser resolve how extensive the scope of work will need to be?
Correct Answer
A) Before accepting, with refinement as the assignment develops
Why this is correct: USPAP requires the appraiser to identify the appraisal problem and develop an initial scope of work sufficient for credible results before accepting the assignment. This scope may be refined as the assignment progresses, but the initial decision is a precondition. Why the other choices are wrong: Deciding after the first draft is too late. Client fee questions are irrelevant. State board audits occur after the fact. Exam tip: Think about scope before you say yes. You need a plan to be credible from the start.
Why This Is the Correct Answer
Why this is correct: USPAP requires the appraiser to identify the appraisal problem and develop an initial scope of work sufficient for credible results before accepting the assignment. This scope may be refined as the assignment progresses, but the initial decision is a precondition. Why the other choices are wrong: Deciding after the first draft is too late. Client fee questions are irrelevant. State board audits occur after the fact. Exam tip: Think about scope before you say yes. You need a plan to be credible from the start.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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