The subject has a feature no comparable shares and no market data supports. The report should:
Correct Answer
D) Disclose the limitation and explain how the conclusion handles it
Why this is correct: When market data doesn't support a feature's value, USPAP requires disclosure of the limitation and an explanation of how it was handled in the analysis. Why the other choices are wrong: Assign a value from published national feature-value tables is unsupported unless those tables reflect the local market. Ignore the feature, since unsupported items add nothing at all may omit a relevant characteristic. Delay the assignment until a comparable sale with the feature occurs is impractical; appraisals often proceed with limitations. Exam tip: Always disclose unsupported features; transparency is required.
Why This Is the Correct Answer
Why this is correct: When market data doesn't support a feature's value, USPAP requires disclosure of the limitation and an explanation of how it was handled in the analysis. Why the other choices are wrong: Assign a value from published national feature-value tables is unsupported unless those tables reflect the local market. Ignore the feature, since unsupported items add nothing at all may omit a relevant characteristic. Delay the assignment until a comparable sale with the feature occurs is impractical; appraisals often proceed with limitations. Exam tip: Always disclose unsupported features; transparency is required.
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