An apparently relevant sale has important transaction terms that remain unverified after reasonable research. What should the appraiser do?
Correct Answer
C) Assess the remaining uncertainty, obtain further support when needed, and use, weight, or exclude it as justified
Evaluate the significance of the unverified terms and the reliability of all available evidence. Seek additional support when needed, and determine whether and how the sale can contribute to credible results. Explain material limitations and analytical treatment sufficiently. Disclosure alone is not a substitute for support; however, reduced weight is not a universal numerical requirement. Broader-area sales may be appropriate when comparability and market differences are analyzed.
Why This Is the Correct Answer
Option C is correct because the appraiser should assess the remaining uncertainty, obtain further support when needed, and use, weight or exclude the sale as justified. This reflects USPAP's requirement that credible results be supported by relevant evidence and logic, and the appraiser should explain material limitations and the analytical treatment.
Why the Other Options Are Wrong
Option A: Treat recording as proof that all transaction terms are confirmed
Option A treats recording as proof that all transaction terms are confirmed. A recorded deed does not necessarily disclose financing, concessions or other material terms, so recording alone does not verify them.
Option B: Use it at full weight, since its location is close
Option B uses the sale at full weight because its location is close. Proximity does not resolve uncertainty about unverified terms that could affect the price.
Option D: Replace it with a recent sale from a distant city, without testing whether that sale is comparable to the subject
Option D replaces the sale with a recent sale from a distant city without testing comparability. Broader-area sales can be appropriate, but only when comparability and market differences are analyzed.
Weigh what you cannot verify
An unverified sale is not automatically in or out; its weight should reflect how much the unknown terms matter.
How to use: Use this approach when a question involves a comparable with incomplete verification.
Exam Tip
Look for the answer that calls for judgment and support, not one that treats a single fact like recording or proximity as decisive.
Common Mistakes to Avoid
- -Assuming a recorded deed confirms all transaction terms
- -Giving full weight to a sale just because it is close
- -Using distant sales without analyzing market differences
Concept Deep Dive
Analysis
This question tests how to handle a comparable whose important terms cannot be verified. Credible results require support by relevant evidence to the degree necessary for the intended use. The appraiser assesses the remaining uncertainty, seeks further support when needed, and decides whether to use, weight or exclude the sale based on that judgment.
Background Knowledge
Verifying comparable sales confirms price, terms, conditions and motivations. When verification is incomplete, the appraiser judges how much the uncertainty matters and whether other evidence fills the gap. Disclosure alone does not substitute for support, and no universal numerical weighting rule applies.
Real-World Application
A nearby sale closed at a price that seems high, and neither agent will discuss seller concessions. The appraiser checks the listing history and other sales, gives the sale reduced weight, and explains the limitation in the report.
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