In a commercial-residential mixed-use neighborhood, an appraiser adjusts a comparable for corner location using a $16,000 dollar adjustment derived from detached single-family sales. The subject is a duplex on a corner lot. The appraiser notes in the report: 'Corner premium is assumed consistent across housing types due to shared street exposure.' Under USPAP, what is the primary deficiency in this reasoning?
Correct Answer
B) The adjustment is not supported by market data specific to duplexes or mixed-use properties.
Standards Rule 1-4(a) requires that adjustments be based on market data relevant to the *type of property being appraised*. Applying a corner premium derived solely from detached single-family sales to a duplex violates this requirement — duplexes may exhibit different locational premiums due to differing buyer expectations, parking needs, or zoning constraints. Option B correctly identifies the core USPAP deficiency. Option A references a non-existent USPAP net adjustment limit. Option C confuses methodology: dollar adjustments are appropriate for locational features when supported by paired sales. Option D invents a prohibition not found in USPAP or the 2026 AQB Content Outline.
Why This Is the Correct Answer
Standards Rule 1-4(a) requires that adjustments be based on market data relevant to the *type of property being appraised*. Applying a corner premium derived solely from detached single-family sales to a duplex violates this requirement — duplexes may exhibit different locational premiums due to differing buyer expectations, parking needs, or zoning constraints. Option B correctly identifies the core USPAP deficiency. Option A references a non-existent USPAP net adjustment limit. Option C confuses methodology: dollar adjustments are appropriate for locational features when supported by paired sales. Option D invents a prohibition not found in USPAP or the 2026 AQB Content Outline.
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