An appraiser is asked to remove an unfavorable comparable sale from a completed report before delivery. Complying would:
Correct Answer
C) Make the report misleading by omitting relevant data
Why this is correct: The governing concept is USPAP's ethical requirement for impartiality and not suppressing relevant data. The original explanation clarifies that removing a comparable because it is 'unfavorable' is suppression, not legitimate analytical selection. The intent is to avoid a biased outcome, which makes the report misleading. Why the other choices are wrong: 'Be acceptable if the remaining sales still bracket' is wrong because bracketing does not justify suppressing data to please a client. 'Be acceptable, since comparable selection is discretionary' is wrong because while selection is discretionary, it must be based on objective analysis, not client pressure. 'Require only a note explaining the removal' is wrong because a note does not cure the unethical act of removing relevant data to alter the conclusion. Exam tip: Remember: USPAP prohibits omitting relevant data to mislead. 'Selection' is analytical; 'suppression' is unethical.
Why This Is the Correct Answer
Why this is correct: The governing concept is USPAP's ethical requirement for impartiality and not suppressing relevant data. The original explanation clarifies that removing a comparable because it is 'unfavorable' is suppression, not legitimate analytical selection. The intent is to avoid a biased outcome, which makes the report misleading. Why the other choices are wrong: 'Be acceptable if the remaining sales still bracket' is wrong because bracketing does not justify suppressing data to please a client. 'Be acceptable, since comparable selection is discretionary' is wrong because while selection is discretionary, it must be based on objective analysis, not client pressure. 'Require only a note explaining the removal' is wrong because a note does not cure the unethical act of removing relevant data to alter the conclusion. Exam tip: Remember: USPAP prohibits omitting relevant data to mislead. 'Selection' is analytical; 'suppression' is unethical.
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?
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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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