USPAP Appraisal Development Standards Flashcards

Under USPAP, which of the following best describes 'exposure time'?

Answer: The estimated length of time a property would need to be marketed before it sells at market value

Exposure time is the estimated period a property would need to be on the market prior to the effective date to achieve a sale at the market value determined by the appraiser.

Under USPAP Standards Rule 1-2, the appraiser must identify the type and definition of value because:

Answer: Different definitions of value can lead to different conclusions

Different definitions of value (market value, investment value, insurable value, etc.) lead to different methodologies and conclusions, so the type must be clearly identified.

Under USPAP, 'limiting conditions' in an appraisal report are best described as:

Answer: Statements that restrict or constrain the appraiser's development or reporting

Limiting conditions are statements that define the scope of the appraiser's work or the reliance placed on information from others, constraining the nature of the assignment.

Under USPAP, a 'prospective value opinion' is one where the effective date is:

Answer: A future date relative to when the report is prepared

A prospective value opinion has an effective date in the future — typically used for proposed construction or development projects.

Under USPAP Standards Rule 1-6, when reconciling the approaches to value, the appraiser must:

Answer: Consider and analyze the quality and quantity of data and appropriateness of each approach

SR 1-6 requires the appraiser to analyze the quality and quantity of data and the appropriateness of each approach before giving weight in reconciliation.

Under USPAP, which of the following is a requirement when using comparable sales in the sales comparison approach?

Answer: Appraisers must verify sales data through a reliable source

USPAP requires appraisers to verify sales data through reliable sources to ensure accuracy, even if the data comes from public records or MLS.