Some data requested on Form 1004MC are unavailable or unreliable in the subject’s market. What must the appraiser do?
Correct Answer
A) Provide an explanation for the missing or unreliable data
If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation.
Why This Is the Correct Answer
Option A is correct because Form 1004MC states that if any required data is unavailable or considered unreliable, the appraiser must provide an explanation.
Why the Other Options Are Wrong
Option B: Estimate the missing figures from national averages
Option B, estimating the missing figures from national averages, is wrong because national averages do not represent the subject's local market, and the form calls for an explanation rather than substitute figures.
Option C: Decline the assignment as one that cannot be completed
Option C, declining the assignment, is wrong because missing data does not by itself make the assignment impossible; the form provides for explaining the gap.
Option D: Leave the fields blank with no further comment
Option D, leaving the fields blank with no comment, is wrong because the form requires an explanation when data is unavailable or unreliable.
No data, explain why
When a 1004MC field cannot be filled reliably, write why instead of guessing or leaving it blank.
How to use: Use this rule for any question about missing or unreliable 1004MC data.
Exam Tip
When required data is unavailable, the expected response is an explanation, not invented numbers or silence.
Common Mistakes to Avoid
- -Filling gaps with national or regional averages
- -Leaving fields blank without explanation
- -Declining work just because some data is unavailable
Concept Deep Dive
Analysis
This question tests what Form 1004MC requires when data is missing or unreliable. The form directs the appraiser to provide an explanation. Substituting unrelated data, declining the assignment or leaving fields blank do not meet that instruction.
Background Knowledge
Form 1004MC summarizes local market trends such as sales, listings, absorption and price changes. Data availability varies by market, especially in rural or thin markets, so the form allows the appraiser to explain gaps. Clear explanations help report users understand the basis for market-condition conclusions.
Real-World Application
In a rural county with few sales, the local data source does not track pending sales. The appraiser leaves that figure unreported, explains why in the comment section and supports the market trend with other available evidence.
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