An appraiser is engaged to appraise a single-unit dwelling. Upon inspection, the property is a three-unit dwelling. The best course of action is:

Study for the McKissock 15hr National USPAP Test. Use flashcards and multiple-choice questions with hints and explanations. Get ahead in your appraisal career!

Multiple Choice

An appraiser is engaged to appraise a single-unit dwelling. Upon inspection, the property is a three-unit dwelling. The best course of action is:

Explanation:
When the actual property differs from what was originally described in the engagement, you must reassess the scope of work to fit the real assignment. USPAP requires identifying the problem and determining the scope of work sufficient to produce credible results. A three-unit dwelling changes the data needs, the approaches to value likely applicable (for example, more emphasis on the income approach), and the reporting requirements compared to a single-unit home. Because the assignment has effectively changed, you should pause, discuss with the client to confirm the intended scope, and revise the scope before proceeding. Proceeding with the original scope would risk producing a noncredible result and would not meet USPAP requirements.

When the actual property differs from what was originally described in the engagement, you must reassess the scope of work to fit the real assignment. USPAP requires identifying the problem and determining the scope of work sufficient to produce credible results. A three-unit dwelling changes the data needs, the approaches to value likely applicable (for example, more emphasis on the income approach), and the reporting requirements compared to a single-unit home. Because the assignment has effectively changed, you should pause, discuss with the client to confirm the intended scope, and revise the scope before proceeding. Proceeding with the original scope would risk producing a noncredible result and would not meet USPAP requirements.

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