An appraiser cannot verify a sale that appears important to the analysis. What should follow?
Correct Answer
C) Weigh it accordingly or exclude it with explanation
Why this is correct: USPAP and professional standards require appraisers to disclose the extent of verification. An unverified sale may contain hidden concessions or terms. The appraiser must either exclude it or, if including it for context, clearly disclose the lack of verification and assign it less weight in the analysis. Why the other choices are wrong: "Use it and note that verification failed" is incorrect; merely noting failure without adjusting its weight or explaining the impact is insufficient. "Use it, since recorded sales need no verification" is incorrect; verification is a required step for sales used as comparables. "Substitute a similar sale from another market" is incorrect; sales must be from the subject's market area. Exam tip: Unverified data requires a disclosure about its limitations and careful consideration of its weight.
Why This Is the Correct Answer
Why this is correct: USPAP and professional standards require appraisers to disclose the extent of verification. An unverified sale may contain hidden concessions or terms. The appraiser must either exclude it or, if including it for context, clearly disclose the lack of verification and assign it less weight in the analysis. Why the other choices are wrong: "Use it and note that verification failed" is incorrect; merely noting failure without adjusting its weight or explaining the impact is insufficient. "Use it, since recorded sales need no verification" is incorrect; verification is a required step for sales used as comparables. "Substitute a similar sale from another market" is incorrect; sales must be from the subject's market area. Exam tip: Unverified data requires a disclosure about its limitations and careful consideration of its weight.
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