Certified Residential Appraiser Practice Exam

If an appraiser quotes a fee that is $100 higher because the property’s value opinion is over $500,000, is this a USPAP violation?

1. No

2. Yes

3. It depends on the client

4. Only if the client objects

The correct answer is: Yes

The situation described involves an appraiser adjusting their fee based on the value opinion of the property. Under USPAP (Uniform Standards of Professional Appraisal Practice), it is important to maintain impartiality and objectivity in the appraisal process. If an appraiser increases their fee solely based on the property’s value rather than on the complexity or other relevant factors of the assignment, it can be seen as a violation of USPAP standards. The principle at the core of this discussion is that an appraiser should not have a fee structure that creates a conflict of interest or the impression of bias based on property value. Charging a higher fee merely because the property's value exceeds a threshold can suggest that the appraiser may value the property differently for financial gain, which compromises the integrity of the appraisal process. Therefore, in this scenario, quoting a fee that is higher due to the property’s value is indeed a violation of USPAP, as it undermines the objectivity that appraisers must uphold in their professional assessments.