A reviewer asks why a report used three comps rather than six. The Standard 2 answer is that a report must contain:
Correct Answer
D) Enough information for intended users to understand the report
USPAP requires sufficient reporting for intended users and adequate development for credible results; it does not prescribe a universal count of three or six comparables. A program or assignment may have additional requirements that need separate consideration.
Why This Is the Correct Answer
Option D is correct because Standard 2 requires a report to contain sufficient information to enable the intended users to understand it properly. USPAP does not set a fixed count of three or six comparables. Program or client requirements may add specific expectations, but the USPAP answer is sufficiency for users.
Why the Other Options Are Wrong
Option A: A minimum of six closed comparables in a residential assignment
Option A is wrong because USPAP does not require a minimum of six closed comparables in a residential assignment. No universal comparable count appears in USPAP.
Option B: The comparables that the report software template provides
Option B is wrong because the comparables that the report software template provides do not define what is needed. A template's fields are not a USPAP standard.
Option C: As many comparables as the report appendix can hold
Option C is wrong because including as many comparables as the report appendix can hold confuses quantity with sufficiency. More data does not by itself make a report understandable or credible.
USPAP counts sufficiency, not comps
USPAP asks whether users can understand the report, not whether it shows a set number of comps.
How to use: Use this to reject options citing a fixed number of comparables as a USPAP rule.
Exam Tip
Be wary of options that state a specific number of comparables as a USPAP requirement.
Common Mistakes to Avoid
- -Thinking USPAP sets a minimum number of comparables
- -Treating a software template as a standard
- -Assuming more comparables always means a better report
Concept Deep Dive
Analysis
This question tests whether USPAP prescribes a number of comparables. It does not; Standard 2 requires reports to contain sufficient information for intended users to understand them, and Standard 1 requires adequate development for credible results. The answer should reflect that sufficiency standard.
Background Knowledge
USPAP is a performance standard rather than a checklist of counts or forms. The appraiser determines what data are needed for credible results and reports enough for intended users. Lenders or government programs may impose their own minimums as assignment conditions.
Real-World Application
In a rural area with few sales, an appraiser uses three well-verified comparables and explains the scarcity of data and how each sale relates to the subject. A reviewer questioning the count is directed to that explanation.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam