For a market-value appraisal with subject history available in the normal course of business, which analysis is required by 2024 USPAP SR 1-5?
Correct Answer
A) Current agreements, options and listings, plus three years of transfers.
The required subject-history analysis covers agreements of sale, options and listings current on the effective date, and all sales and other transfers in the three years before that date, subject to the rule’s availability condition. Do not substitute an unspecified one-to-three-year period, the report date or assessed-value data for those categories.
Why This Is the Correct Answer
Option A is correct because SR 1-5 requires analysis of all agreements of sale, options and listings current as of the effective date, and all sales and other transfers within the three years prior to the effective date. Option A names both parts. The availability condition in the stem is met.
Why the Other Options Are Wrong
Option B: Insurance claims filed during the ten years before the report date.
Option B says insurance claims filed during the ten years before the report date. SR 1-5 concerns agreements, options, listings and transfers, not insurance claims, and it measures three years from the effective date.
Option C: Last year’s utility consumption, as a proxy for transaction history.
Option C says last year's utility consumption as a proxy for transaction history. Utility usage is not transaction history and is not one of the categories SR 1-5 requires.
Option D: Five years of assessed values, in place of the transfer history.
Option D says five years of assessed values in place of the transfer history. Assessed values do not replace the required analysis of actual sales and other transfers within three years.
Now plus three years back
Pending agreements, options and listings as of the effective date, plus three years of prior sales and transfers.
How to use: Use this when an option swaps in other records or time frames for subject history.
Exam Tip
Eliminate options that replace transaction history with unrelated data such as assessments, insurance claims or utility records.
Common Mistakes to Avoid
- -Substituting assessed values for transfer history
- -Using a time period other than three years
- -Measuring from the report date instead of the effective date
Concept Deep Dive
Analysis
This question tests SR 1-5's subject-history requirement for market value appraisals when the information is available in the normal course of business. The required categories are current agreements, options and listings, plus all sales and transfers within three years before the effective date. Options that substitute unrelated records or different time periods do not match.
Background Knowledge
SR 1-5 requires analysis of the subject's own market history so the appraiser can consider pending deals and recent transfers. The time frame is anchored to the effective date. Assessed values or other records may be useful data but do not replace this analysis.
Real-World Application
An appraiser values a property that is under contract and that sold through a foreclosure eighteen months earlier. The appraiser analyzes the current contract and the foreclosure sale. Tax assessment history may be noted, but it does not replace analysis of those transactions.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Related Tools
Previous Question
The effective date of an appraisal differs from the report date in that the effective date:
Next Question
A proposed public transportation improvement is not yet built, but relevant market transactions already reflect its expected effect. Under 2024 USPAP SR 1-4(f), how should the appraiser treat that proposal?