A subdivision has only four recent sales, and the appraiser determines they do not adequately support the planned market study. What is the best next research step?
Correct Answer
C) Investigate relevant sales over a wider area or period and explain comparability
Investigate relevant competitive areas or additional periods, verify the transactions and explain material differences and supported market-condition adjustments. More observations alone do not establish representativeness. An unsupported subdivision substitution does not cure the limitation. If adequate evidence still cannot be obtained, reconsider scope and whether credible completion is possible. Four sales are not automatically insufficient for every assignment.
Why This Is the Correct Answer
Investigate relevant competitive areas or additional periods, verify the transactions and explain material differences and supported market-condition adjustments. More observations alone do not establish representativeness. An unsupported subdivision substitution does not cure the limitation. If adequate evidence still cannot be obtained, reconsider scope and whether credible completion is possible. Four sales are not automatically insufficient for every assignment.
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Previous Question
An appraiser summarizes 20 sale prices with no ties using a winsorized mean, treating one observation in each tail. Verification then shows that the second-highest sale closed at $840,000, not the $820,000 on file. The highest sale closed at $980,000. How much does the corrected winsorized mean rise?
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