In an appraisal with a one-unit dwelling and a sales history showing the subject sold twice in the past year, Standard 1 requires the appraiser to:
Correct Answer
B) Analyze the subject's prior sales within the required look-back period
Why this is correct: Standard 1 requires the appraiser to analyze the subject property's prior sales history within a specified look-back period (typically three years for one-unit properties). This analysis is mandatory to understand the property's market context. Why the other choices are wrong: Ignoring the sales is not permitted. Using the higher price is not correct analysis. Reporting only if asked violates the standard; the analysis is required. Exam tip: You must analyze the subject's own sales history. It's not optional.
Why This Is the Correct Answer
Why this is correct: Standard 1 requires the appraiser to analyze the subject property's prior sales history within a specified look-back period (typically three years for one-unit properties). This analysis is mandatory to understand the property's market context. Why the other choices are wrong: Ignoring the sales is not permitted. Using the higher price is not correct analysis. Reporting only if asked violates the standard; the analysis is required. Exam tip: You must analyze the subject's own sales history. It's not optional.
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