An appraiser relies on a published capitalization rate survey. What must be considered?

Correct Answer

A) Whether the survey covers this property type and market

Why this is correct: When using a published survey as a source for a capitalization rate, USPAP's competency rule requires the appraiser to ensure the data is appropriate for the assignment. The most critical consideration is whether the survey's data set (e.g., property types, geographic markets, asset quality) is relevant and comparable to the subject property. Using an irrelevant survey would violate the requirement to use credible data. Why the other choices are wrong: The choice "Whether the survey was published within thirty days" is wrong; while data should be reasonably current, there is no universal 30-day rule—relevance is more important than an arbitrary recency threshold. The choice "Whether the survey names each contributing investor" is incorrect; surveys typically provide aggregated, anonymous data to protect confidentiality. The choice "Whether the client subscribes to the same survey" is irrelevant; the appraiser's duty is to use appropriate data, not data preferred by the client. Exam tip: For any secondary data source, always ask: "Is this data relevant to my specific subject property and market?"