Question

Lisa recently accepted an appraisal assignment. During the assignment she goes to the property and does an inspection of the neighborhood, property exterior, property interior and comparable properties from the street. During her trip to the property the homeowner says that she needs the property to appraise at $400,000. Which rule has been violated if Lisa appraises the property at $400,000?

a. Ethics Rule, she clearly listened to the homeowner

b. Competency Rule, she clearly should not have been given this assignment

c. Scope of work rule, she did fully investigate the market comparables

d. It is hard to say if she did or did not violate USPAP based on the information provided

Answer 1

The correct option is 'a', Ethics Rule, she clearly listened to the homeowner. The homeowner desired that the appraisal of the property should be $400,000. After thorough inpection of the property, she appraised the property at $400,000, the exact amount desired by the homeowner. This shows that her appraisal was clearly influenced and motivated by the homeowner, hence she violated Ethics Rule of USPAP.