Question: Michael accepted an assignment from a client who said that they would like an exterior only appraisal of a single-family home in his area. During

  1. Michael accepted an assignment from a client who said that they would like an exterior only appraisal of a single-family home in his area. During the assignment Michael goes to the property and is viewing the home from the exterior when he sees the tenant he strikes up a conversation as it is a friend from college. During the discussion the tenant tells Michael that the property is divided up into five units. What should Michael do?
    1. Stay with the original scope of work and evaluate the property as a single-family home
    2. Develop an appraisal based on an interior inspection to determine that the house is actually divided up into five units
    3. Go back to the lender and let the lender know the information that has been discovered and let the lender adjust the scope of work
    4. Inform the lender that the scope of work has changed and determine the highest and best use for the property and prepare a valuation of the property using a hypothetical condition on the five units as well as the single-family property

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