A client supplies comparable sales and asks that only those be used. How should the appraiser treat this?
Correct Answer
A) Consider them, but select comparables independently
Consider client-supplied sales on their merits and independently evaluate their reliability and comparability. Determine whether the restriction would prevent credible results. Seek removal or modification of an unacceptable restriction; do not accept or continue under conditions that preclude credibility. Receiving a list does not itself require refusal, and independently determining that its sales are sufficient is possible. Disclosure that the client chose the list cannot substitute for the appraiser’s analysis and responsibility.
Why This Is the Correct Answer
Option A is correct because the appraiser should consider the client's sales but select comparables independently. Standards Rule 1-4 requires the appraiser to collect, verify and analyze all information necessary for credible results, and the appraiser must not advocate any party's interest. If the restriction would prevent credible results, the appraiser should seek its removal or modification rather than accept it.
Why the Other Options Are Wrong
Option B: Use exactly those, since the client defines the scope
Option B uses exactly those sales because the client defines the scope. A client cannot impose a condition that prevents credible results, and the appraiser remains responsible for selecting appropriate comparables.
Option C: Refuse the assignment on receiving the list
Option C refuses the assignment on receiving the list. Receiving a list does not itself require refusal; the appraiser can evaluate the sales and seek to remove an unacceptable restriction.
Option D: Use them and note the client made the selection
Option D uses the sales and notes that the client made the selection. Disclosing the client's choice does not substitute for the appraiser's own analysis and responsibility for credible results.
Consider the list, choose yourself
Client-supplied comparables are suggestions to evaluate, not orders to follow.
How to use: Use this rule when a client tries to dictate data or comparables.
Exam Tip
Look for the answer that keeps the appraiser's independent judgment intact without overreacting by refusing outright.
Common Mistakes to Avoid
- -Using only client-selected comparables because the client asked
- -Refusing an assignment simply because a list was provided
- -Believing disclosure of the client's selection cures a lack of analysis
Concept Deep Dive
Analysis
This question tests appraiser independence when a client tries to limit comparable selection. The appraiser should consider client-supplied sales on their merits but select comparables independently, because USPAP requires collecting and analyzing all information necessary for credible results and forbids advocating a party's cause. The question is whether the restriction would prevent credible results.
Background Knowledge
Clients may supply information, including possible comparables, and the appraiser can consider it. However, USPAP requires the appraiser to determine an appropriate scope of work and to remain impartial. Assignment conditions that would preclude credible results are not acceptable.
Real-World Application
A client sends three sales and asks that only those be used. The appraiser analyzes them, finds two comparable and one a distressed sale, adds other suitable sales, and explains the selection in the report.
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