Client Advisory & Consultation Flashcards

An FHA client requests an appraisal update letter stating the value has not changed, six months after the original appraisal. What must the appraiser do before issuing the update?

Answer: Re-inspect the property and research current market data to determine whether the original value still holds

Before certifying that value is unchanged, the appraiser must conduct a new market analysis and re-inspect or acknowledge current property condition to support the update.

When advising a client on the intended use of an FHA appraisal, the appraiser discovers the client plans to use the report for a purpose not originally disclosed. What is the appraiser's obligation?

Answer: Assess whether the new use renders the appraisal misleading and communicate any concerns to the client

The appraiser must evaluate whether the undisclosed use would make the appraisal misleading and advise the client accordingly, potentially requiring a new assignment.

A client pressures an FHA appraiser to remove a Minimum Property Requirement (MPR) deficiency noted in the report. The appraiser has no new information. What should the appraiser do?

Answer: Decline to remove it because the observation was accurate and removing it would misrepresent the property condition

Accurately observed MPR deficiencies cannot be removed from the report without factual basis — doing so would constitute a misrepresentation.

An FHA lender asks the appraiser to confirm in the report that the neighborhood is 'stable' to satisfy underwriting requirements, but market data shows declining values. What must the appraiser do?

Answer: Report market conditions accurately as declining, regardless of the client's preference

FHA appraisers must report market conditions factually; characterizing a declining market as stable misrepresents material facts.

During client consultation, a lender asks an appraiser to value a property 'as repaired' when repairs are not yet complete. What must the appraiser do?

Answer: Complete an 'as repaired' appraisal using a hypothetical condition, subject to completion requirements, and clearly disclose it

FHA permits 'as-repaired' appraisals using a hypothetical condition when repairs are incomplete, provided the condition is clearly disclosed and the report is subject to completion.

An FHA appraiser receives a client's scope of work agreement that conflicts with USPAP Standards. Which takes precedence?

Answer: USPAP Standards, which set the minimum requirements that cannot be waived by a client

USPAP establishes minimum requirements that appraisers must meet regardless of client instructions; clients cannot contractually require appraisers to violate USPAP.

A client asks an FHA appraiser to appraise a property the appraiser previously appraised for a different client two years ago at a significantly different value. What must the appraiser consider?

Answer: Disclose the prior service and assess whether it impairs objectivity before accepting

USPAP requires the appraiser to disclose prior services involving the property and assess whether that prior involvement impairs objectivity.