Certified Residential Appraiser Practice Exam

In an appraisal review, what can a reviewer do with previously unavailable information?

1. Use it to conduct a new appraisal

2. Ignore it completely

3. Incorporate it when assessing the quality of the original appraisal

4. Submit it as new evidence in court

The correct answer is: Incorporate it when assessing the quality of the original appraisal

In an appraisal review, incorporating previously unavailable information when assessing the quality of the original appraisal is a critical practice. Such information can provide context that adds clarity to the appraisal process, potentially highlighting factors that were not considered or available at the time of the original assessment. By using this new data, the reviewer can evaluate whether the original appraisal conclusions remain valid or if they need adjustment in light of the new insights. This approach enhances the reliability of the review process, ensuring a more accurate understanding of the property's value and the assumptions made during the initial appraisal. In contrast, utilizing the new information to conduct a new appraisal is not appropriate in the context of a review. Similarly, ignoring the information would not be beneficial, as it could lead to an incomplete assessment of the original appraisal's quality. Finally, while the new information might be relevant in a court context, simply submitting it as new evidence without it being appropriately incorporated into the review process wouldn’t create a valid basis for adjusting or understanding the original appraisal. Incorporation into the review fosters a more comprehensive overview of the appraisal's accuracy and foundational assumptions.