USPAP USPAP Appraisal Development Standards 3

Question 1

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

Accepted Answer

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

Answer

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.

Question 2

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

Accepted Answer

Different definitions of value can lead to different conclusions

Answer

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

Question 3

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

Accepted Answer

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

Answer

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.

Question 4

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

Accepted Answer

A future date relative to when the report is prepared

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

USPAP Exam Practice Test

USPAP Exam Practice Test

USPAP USPAP Appraisal Development Standards 3