Which statement describes the relationship between Standard 1 and Standard 2?
Correct Answer
A) One governs developing the opinion; the other, reporting it
Why this is correct: Standard 1 governs the process of developing an appraisal (data collection, analysis, reconciliation). Standard 2 governs the process of reporting the appraisal (communication of the results in a manner that is not misleading). Both apply to every assignment. Why the other choices are wrong: The standards are not split by property type. Both bind the appraiser. They are not alternative tracks; both must be followed. Exam tip: Std 1 = Develop. Std 2 = Report. Every assignment needs both.
Why This Is the Correct Answer
Why this is correct: Standard 1 governs the process of developing an appraisal (data collection, analysis, reconciliation). Standard 2 governs the process of reporting the appraisal (communication of the results in a manner that is not misleading). Both apply to every assignment. Why the other choices are wrong: The standards are not split by property type. Both bind the appraiser. They are not alternative tracks; both must be followed. Exam tip: Std 1 = Develop. Std 2 = Report. Every assignment needs both.
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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An appraiser is valuing a single-family residence and determines that recent comparable sales are limited, but cost and income approaches are not applicable. According to USPAP, the appraiser should:
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Under the Competency Rule, an appraiser who lacks competency in a specific assignment type must do which of the following BEFORE accepting the assignment?