An appraiser receives a collector’s area sketch, while comparable-sale area figures may use different measurement conventions. What should the appraiser do before relying on the figures?
Correct Answer
C) Find the subject’s measurement rules and research basis differences first
Evaluate how the subject was measured and follow applicable measurement requirements. Comparable data may use different or unknown conventions; research the information and market to determine whether a difference affects analysis or warrants an adjustment. Do not mistake a classification or measurement-basis difference for an actual market size difference. USPAP does not require personal remeasurement of every comparable or identical known conventions for every usable sale.
Why This Is the Correct Answer
Option C is correct because the appraiser should find the subject's applicable measurement rules and research basis differences before relying on the figures. Comparable data may use different or unknown conventions, and the appraiser researches the information and market to judge whether a difference matters. This avoids mistaking a measurement-basis difference for a real market size difference.
Why the Other Options Are Wrong
Option A: Treat a printed scale on the sketch as proof that the figures are comparable
Option A is wrong because it treats a printed scale on the sketch as proof that the figures are comparable. A scale shows the drawing's proportions; it does not show that the subject and comparables were measured under the same convention.
Option B: Accept all of the areas, because the client has accepted the sketch
Option B is wrong because it accepts all areas because the client accepted the sketch. Client acceptance does not establish how the areas were measured or whether they are comparable.
Option D: Reject the comparables that were not personally remeasured to one standard
Option D is wrong because it rejects comparables that were not personally remeasured to one standard. USPAP does not require personal remeasurement of every comparable, and differences can be researched and addressed instead.
Subject rules, then comparables
First know how the subject must be measured, then find out how each comparable was measured. Compare only after you know both bases.
How to use: Use this when a question involves sketches or area figures from different sources.
Exam Tip
Choose the research-first answer; client acceptance, a printed scale, or blanket rejection of comparables are shortcuts that do not resolve measurement differences.
Common Mistakes to Avoid
- -Assuming a scaled sketch proves area figures are comparable
- -Rejecting usable comparables because they were not personally remeasured
- -Treating a classification difference as a real size difference
Concept Deep Dive
Analysis
This question tests how to handle area figures that may rest on different measurement conventions. The appraiser first establishes the measurement requirements that apply to the subject and then researches whether comparable figures use a different basis. Only then can the appraiser judge whether a difference affects the analysis or warrants adjustment.
Background Knowledge
Measurement standards such as ANSI apply to above- and below-grade square footage for many single-family dwellings under certain program requirements. Comparable data from listings or public records may use different or unknown methods, so appraisers research whether adjustments are warranted.
Real-World Application
A data collector supplies a sketch of the subject, and the appraiser confirms it follows the measurement standard required by the lender's program. For comparables pulled from MLS, the appraiser checks remarks and records to see whether reported areas include basements or bonus rooms before comparing.
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