The subject is under contract at $500,000 with $15,000 in seller credits. Standard 1 requires the appraiser to:
Correct Answer
C) Analyze the agreement of sale, including its terms and concessions
Why this is correct: Standard 1 requires analyzing any current agreement of sale, including its price, terms, and concessions like seller credits, to understand the transaction, as per the original explanation. Why the other choices are wrong: "Ignore the contract to avoid being anchored" is incorrect; the contract must be analyzed. "Simply adopt the contract price as the final value conclusion" is wrong; analysis does not mean adoption. "Report only the headline price without terms" is false; terms must be considered. Exam tip: Always analyze the sale agreement; don't ignore or blindly adopt it.
Why This Is the Correct Answer
Why this is correct: Standard 1 requires analyzing any current agreement of sale, including its price, terms, and concessions like seller credits, to understand the transaction, as per the original explanation. Why the other choices are wrong: "Ignore the contract to avoid being anchored" is incorrect; the contract must be analyzed. "Simply adopt the contract price as the final value conclusion" is wrong; analysis does not mean adoption. "Report only the headline price without terms" is false; terms must be considered. Exam tip: Always analyze the sale agreement; don't ignore or blindly adopt it.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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