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
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