An appraiser cites a market statistic without stating the geography it covers. What is the flaw?
Correct Answer
B) The reader cannot judge relevance to the subject
Why this is correct: For any data to be meaningful, the reader must understand its geographic scope to assess its relevance to the subject property's market. A statistic without this context is useless. Why the other choices are wrong: "Statistics may not be cited in appraisal reports" is false; they are commonly used. "The statistic becomes confidential information" is incorrect; the flaw is lack of context, not confidentiality. "Geography affects only commercial property values" is false; location is critical for all property types. Exam tip: Always report the source, date, and geographic scope of any market data you cite.
Why This Is the Correct Answer
Why this is correct: For any data to be meaningful, the reader must understand its geographic scope to assess its relevance to the subject property's market. A statistic without this context is useless. Why the other choices are wrong: "Statistics may not be cited in appraisal reports" is false; they are commonly used. "The statistic becomes confidential information" is incorrect; the flaw is lack of context, not confidentiality. "Geography affects only commercial property values" is false; location is critical for all property types. Exam tip: Always report the source, date, and geographic scope of any market data you cite.
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Which assignment type still requires the appraiser to develop an opinion of value?
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A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
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