SAEE SAEE - Valuation Reporting Requirements Questions and Answers 3

Question 1

Under USPAP, which element is REQUIRED to be included in the certification of a real property appraisal report?

Accepted Answer

A statement that the appraiser's compensation is not contingent on a predetermined value

Answer

A statement that the appraiser has no prior relationship with the property

Answer

A statement listing every comparable sale used in the analysis

Answer

A statement confirming the appraiser holds a state-certified license

Question 2

When a valuation report contains an extraordinary assumption, the appraiser must:

Accepted Answer

Clearly state the assumption and note it could affect the assignment results

Answer

Omit the assumption if it cannot be verified

Answer

Obtain written client approval before including the assumption

Answer

Automatically issue a restricted appraisal report instead

Question 3

The Scope of Work in a valuation report must describe:

Accepted Answer

The extent of research and analyses applied in the assignment

Answer

Only the physical inspection procedures performed

Answer

All comparable sales data collected regardless of relevance

Answer

The appraiser's professional development history

Question 4

A Restricted Appraisal Report differs from an Appraisal Report primarily in that it:

Accepted Answer

Contains less content but may reference the workfile for detail

Answer

Uses different valuation methods than a standard report

Answer

Is only permitted for commercial property assignments

Answer

Requires a higher level of USPAP compliance

Question 5

Under USPAP, which of the following is an acceptable basis for departing from a SPECIFIC REQUIREMENT of a standard?

Accepted Answer

The scope of work makes the requirement unnecessary for credible results

Answer

The client requests a shorter report to reduce costs

Answer

The state AMC waives the requirement in writing

Answer

The property is a non-complex single-family residential dwelling

Question 6

When an appraiser uses an automated valuation model (AVM) output as a tool in developing an opinion of value, the report must:

Accepted Answer

Disclose the use of the AVM as part of the scope of work

Answer

Reproduce the AVM algorithm in full

Answer

Identify the AVM as a comparable sale

Answer

Assign the AVM a separate line of value reconciliation

Question 7

If an appraiser's opinion of value is subject to a hypothetical condition, the report must:

Accepted Answer

State the condition is assumed to be true even though it may be false

Answer

Verify the condition independently before including it

Answer

Only disclose the condition in the workfile, not the report

Answer

Convert the report to a Restricted Appraisal Report automatically