Property ValuationIntermediateAlaska Exam

Under USPAP, an Alaska appraiser who has a financial interest in a property they are appraising must:

ADisclose the interest and complete the appraisal with extra care
BDecline the appraisal assignmentCorrect
CHave the appraisal reviewed by a second appraiser
DDisclose only if the interest exceeds 5% of the property value

Why Decline the appraisal assignment Is Correct

Answer B: Decline the appraisal assignment

USPAP requires appraisers to be independent and impartial. An appraiser with a financial interest in the subject property has a conflict of interest that compromises their independence and must decline the assignment.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

Key Property Valuation Terms in This Question

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