USPAP USPAP Appraisal Development Standards

Question 1

Under USPAP Standards Rule 1-1, an appraiser must NOT render appraisal services in a careless or negligent manner. This standard requires the appraiser to:

Accepted Answer

Exercise diligence and competence in every assignment

Answer

Always use three approaches to value

Answer

Inspect every property in person

Answer

Use only government-approved data sources

Question 2

Under USPAP, which of the following correctly defines 'market value'?

Accepted Answer

The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale

Answer

The most recent sale price of a comparable property

Answer

The assessed value determined by the tax authority

Answer

The list price set by the seller

Question 3

Under USPAP Standards Rule 1-3, when the value to be developed is market value, the appraiser must:

Accepted Answer

Identify and analyze the effect on value of existing and anticipated market conditions

Answer

Ignore the cost approach if it is not applicable

Answer

Use only the sales comparison approach

Answer

Rely solely on comparable sales from the prior 90 days

Question 4

The principle of 'highest and best use' is required to be analyzed under USPAP because it:

Accepted Answer

Identifies the use that produces the greatest value and forms the basis for value development

Answer

Always results in the highest value conclusion

Answer

Is required only for vacant land

Answer

Satisfies lender requirements for loan approval

Question 5

Under USPAP Standards Rule 1-4, when developing a real property appraisal, an appraiser must consider which approaches to value?

Accepted Answer

All applicable approaches to value

Answer

Only the sales comparison approach

Answer

Cost approach and income approach only

Answer

Only the approach preferred by the client

Question 6

Under USPAP, 'reconciliation' in the development of a value opinion means:

Accepted Answer

Analyzing and weighing the results of all approaches to reach a final value conclusion

Answer

Averaging the results of the three approaches

Answer

Choosing only the highest indicated value

Answer

Eliminating approaches that show different results