An appraiser must analyze the subject's current listing, if any, because:
Correct Answer
B) It is market evidence about the subject itself
Why this is correct: The subject's current listing is direct market evidence about the property itself. Analyzing it is required by USPAP (Standard 1-2(b)(ix)) to understand market reaction to the asking price, which informs the value conclusion. Why the other choices are wrong: 'Listings determine the value conclusion' is wrong; listings are evidence, not the sole determinant of value. 'Standards require listing prices be adopted' is incorrect; standards require analysis, not adoption. 'Lenders will not accept unlisted properties' is false; listing status is not a lender acceptance criterion. Exam tip: Remember: Analyze the listing, but don't be bound by it. It's evidence, not the answer.
Why This Is the Correct Answer
Why this is correct: The subject's current listing is direct market evidence about the property itself. Analyzing it is required by USPAP (Standard 1-2(b)(ix)) to understand market reaction to the asking price, which informs the value conclusion. Why the other choices are wrong: 'Listings determine the value conclusion' is wrong; listings are evidence, not the sole determinant of value. 'Standards require listing prices be adopted' is incorrect; standards require analysis, not adoption. 'Lenders will not accept unlisted properties' is false; listing status is not a lender acceptance criterion. Exam tip: Remember: Analyze the listing, but don't be bound by it. It's evidence, not the answer.
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:
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
Report Writing & Compliance
10% of exam
Related Tools
Previous Question
A subject property has 2,400 square feet and sold comparable properties range from 2,200 to 2,800 square feet. If the market indicates a $50 per square foot adjustment for size differences, what adjustment should be made to a 2,200 square foot comparable?
Next Question
A market value definition typically describes the price as the: