USPAP USPAP Appraisal Development Standards 2

Question 1

Under USPAP, an 'extraordinary assumption' is defined as an assumption that:

Accepted Answer

If found to be false, could alter the appraiser's opinions or conclusions

Answer

Is always true and widely accepted in the market

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Is required by federal regulations in all appraisals

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Applies only to commercial property appraisals

Question 2

Under USPAP, a 'hypothetical condition' differs from an extraordinary assumption in that it:

Accepted Answer

Is contrary to what exists but is used for the purposes of analysis

Answer

Is always accepted as true by all parties

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Does not need to be disclosed in the appraisal report

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Applies only to retrospective appraisals

Question 3

Which USPAP standard specifically addresses the development of a real property appraisal?

Accepted Answer

Standards Rule 1

Answer

Standards Rule 2

Answer

Standards Rule 3

Answer

Standards Rule 5

Question 4

Under USPAP, an appraiser must clearly disclose extraordinary assumptions and hypothetical conditions because:

Accepted Answer

Their use might affect the assignment results, and intended users must understand this

Answer

They are required by the IRS

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They always increase the value conclusion

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The state licensing board requires their disclosure

Question 5

Under USPAP Standards Rule 1-4(c), the income approach to value is developed by:

Accepted Answer

Analyzing the subject's income potential through market-derived income and expense data and appropriate capitalization methods

Answer

Estimating gross rent and applying a standard multiplier

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Using the assessed value and applying a local tax factor

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Using only the actual income reported by the owner

Question 6

Under USPAP, the cost approach requires the appraiser to:

Accepted Answer

Estimate the value of the land separately and estimate the depreciated cost of improvements

Answer

Use only the contractor's bid for construction

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Apply only the Marshall Valuation Service schedules

Answer

Use the assessed building value provided by the county