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 properly
Why this is correct: Standard 2 requires that a report contain sufficient information to enable intended users to understand it properly, not a specific number of comparables, as explained originally. Why the other choices are wrong: "A minimum of six closed comparables in every residential assignment" is incorrect; USPAP sets no fixed minimum. "Whatever the software template provides" is wrong; templates do not determine sufficiency. "As many comparables as the appendix can hold" is false; quantity does not equal quality. Exam tip: Focus on information sufficiency for users, not on arbitrary comp counts.
Why This Is the Correct Answer
Why this is correct: Standard 2 requires that a report contain sufficient information to enable intended users to understand it properly, not a specific number of comparables, as explained originally. Why the other choices are wrong: "A minimum of six closed comparables in every residential assignment" is incorrect; USPAP sets no fixed minimum. "Whatever the software template provides" is wrong; templates do not determine sufficiency. "As many comparables as the appendix can hold" is false; quantity does not equal quality. Exam tip: Focus on information sufficiency for users, not on arbitrary comp counts.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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