Selecting only the comparables that support a desired conclusion is:
Correct Answer
A) Biased, result-driven selection that undermines credibility
Selecting sales to force a predetermined conclusion introduces selection bias. Verifying each selected transaction does not correct a biased selection rule. Comparable selection should follow relevant, supportable criteria and evaluate contrary evidence; it need not be random sampling. Small sample size does not justify result-driven selection.
Why This Is the Correct Answer
Option A is correct because selecting only comparables that support a desired conclusion is biased, result-driven selection. It precludes the appraiser's impartiality and objectivity, which undermines the credibility of the results. Comparable selection should follow relevant, supportable criteria and consider contrary evidence.
Why the Other Options Are Wrong
Option B: Acceptable whenever each selected sale is verified
Option B says this practice is acceptable whenever each selected sale is verified. Verification confirms facts about the chosen sales but does not correct a selection rule designed to reach a predetermined result.
Option C: Required whenever the data set contains contrary evidence
Option C claims selective choice is required whenever the data set contains contrary evidence. Contrary evidence should be evaluated and addressed, not screened out to force a conclusion.
Option D: Required when the available sample of sales is small
Option D says this practice is required when the available sample of sales is small. A small sample may call for wider search or more caution, but it does not justify picking sales to reach a desired number.
Pick by criteria, not conclusion
Sales should be chosen for their similarity to the subject, not for the number they produce.
How to use: Use this as a check whenever a question describes how comparables were chosen.
Exam Tip
Answers that excuse result-driven selection because of verification, contrary data or small samples are distractors.
Common Mistakes to Avoid
- -Thinking verified sales cannot produce a biased analysis
- -Excluding contrary sales without a supportable reason
- -Using a small market as an excuse for selective comparable choice
Concept Deep Dive
Analysis
This question tests recognizing result-driven comparable selection as bias. Choosing only the sales that support a predetermined conclusion means the data no longer represent the market fairly. USPAP prohibits performing an assignment with bias, and verifying each chosen sale does not fix a biased selection rule.
Background Knowledge
USPAP defines bias as a preference or inclination that precludes an appraiser's impartiality, independence or objectivity, and an appraiser must not perform an assignment with bias. Comparable selection should rest on similarity and relevance to the subject. Selection need not be random, but it must not be driven by the desired outcome.
Real-World Application
A lender hints that a refinance needs to reach a certain value. The appraiser finds five similar sales, two of which point lower, and analyzes all of them rather than dropping the lower ones. The report explains the selection criteria and how the lower sales were weighed.
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