CAR Appraisal Reviewer Report Analysis 2 — Questions and Answers
Question 1: When reviewing an appraisal report, what is the primary purpose of examining the scope of work disclosed by the appraiser?
- To verify that the appraiser was licensed
- To confirm the work performed was appropriate for the intended use and users (Correct answer)
- To determine the fee charged was reasonable
- To assess the appraiser's professional experience
Correct answer: To confirm the work performed was appropriate for the intended use and users
The scope of work must be appropriate for the assignment's intended use and intended users per USPAP Scope of Work Rule.
Question 2: An appraisal review identifies that the subject property's gross living area (GLA) was measured using an atypical method not disclosed in the report. What is the reviewer's appropriate action?
- Accept the report as the GLA matches public records
- Note a deficiency requiring the appraiser to disclose the measurement standard used (Correct answer)
- Automatically reject the report
- Request a new appraisal from a different appraiser
Correct answer: Note a deficiency requiring the appraiser to disclose the measurement standard used
USPAP requires appraisers to disclose the measurement standard used; a reviewer must flag non-disclosure as a deficiency.
Question 3: In a desk review, which type of data can the reviewer NOT independently verify?
- Public record ownership data
- Physical condition of the property interior (Correct answer)
- Neighborhood boundary descriptions
- Legal description of the property
Correct answer: Physical condition of the property interior
A desk review is conducted without a property inspection, so interior physical conditions cannot be independently verified.
Question 4: A reviewer finds that the appraiser used five comparable sales but failed to include any listings or pending sales in a market with limited closed transactions. This most likely represents:
- Acceptable practice since closed sales are preferred
- A scope of work deficiency in a market requiring additional market evidence (Correct answer)
- A violation requiring license revocation
- An acceptable deviation from USPAP standards
Correct answer: A scope of work deficiency in a market requiring additional market evidence
When closed sales are limited, USPAP and appraisal practice require consideration of listings and pending sales to adequately support the opinion of value.
Question 5: When a field review appraiser observes that the subject property's condition is materially different from what was reported, what must the reviewer document?
- Only the difference in condition
- The specific discrepancy, its potential value impact, and the basis for the reviewer's conclusion (Correct answer)
- A new value opinion without explanation
- Only that the original appraisal is unacceptable
Correct answer: The specific discrepancy, its potential value impact, and the basis for the reviewer's conclusion
A credible field review requires documenting the observed discrepancy, its nature, and the impact on the reviewer's conclusion.
Question 6: Which USPAP Standard governs the development and reporting of an appraisal review?
- Standard 1 and 2
- Standard 3 and 4 (Correct answer)
- Standard 5 and 6
- Standard 7 and 8
Correct answer: Standard 3 and 4
USPAP Standards 3 (development) and 4 (reporting) govern appraisal review assignments.
Question 7: An appraisal review report must clearly identify:
- Only the reviewer's value conclusion
- The work under review, the reviewer's scope of work, and the reviewer's opinion of the work quality (Correct answer)
- The appraiser's licensing status and disciplinary history
- The client's intended use and the reviewer's certification number only
Correct answer: The work under review, the reviewer's scope of work, and the reviewer's opinion of the work quality
Per USPAP Standard 4, the review report must identify the work under review, the reviewer's scope, and the reviewer's opinion regarding the work reviewed.
CAR Appraisal Reviewer Report Analysis 2
When reviewing an appraisal report, what is the primary purpose of examining the scope of work disclosed by the appraiser?