Two comparables' GLA figures came from tax records and the third from the appraiser's own measurement. The best practice is to:
Correct Answer
D) Verify the record figures against a consistent measurement basis
Investigate the record figures and their measurement basis, compare reliable sources where available, and account for material differences in area definitions or included space. Comparable data may not have been collected under the subject’s current measurement standard, and every comparable is not automatically required to be personally remeasured. Disclose relevant limitations and ensure credible analysis; choosing a desired range or uniform source label does not establish accuracy.
Why This Is the Correct Answer
Option D is correct because the appraiser should verify the record GLA figures and check them against a consistent measurement basis. USPAP requires collecting, verifying and analyzing information necessary for credible results. Material differences in area definitions or included space must be accounted for so the comparables are analyzed fairly.
Why the Other Options Are Wrong
Option A: Adopt the tax figures for all three to maintain consistency
Option A, adopting the tax figures for all three to maintain consistency, uses a uniform source label without checking accuracy. Tax records may measure differently or contain errors, so uniform sourcing does not make the data reliable.
Option B: Use whichever figure produces the tightest value range
Option B, using whichever figure produces the tightest value range, chooses data to reach a desired result. That is biased selection, not verification, and it does not establish accuracy.
Option C: Discard the measured comparable as an inconsistent outlier
Option C, discarding the measured comparable as an inconsistent outlier, throws away possibly the most reliable data point. A different source does not make a comparable an outlier; the differences should be investigated.
Verify before you compare
Different sources may measure differently, so check the basis before comparing square footage across sales.
How to use: Use this when comparable data comes from mixed sources.
Exam Tip
Reject answers that pick data to fit a desired outcome or discard data because of its source. Verification and reconciliation are the best practice.
Common Mistakes to Avoid
- -Choosing GLA figures to tighten the value range
- -Assuming tax record square footage is accurate
- -Mixing above-grade and below-grade area in GLA comparisons
Concept Deep Dive
Analysis
This question tests data verification for comparable gross living area. When GLA figures come from different sources, the appraiser investigates their measurement basis and reconciles material differences. Consistency comes from verified data, not from picking one source label or a convenient result.
Background Knowledge
Comparable data comes from sources such as public records, MLS, plans and measurements, which may use different measurement standards. Appraisers verify data and account for differences that could distort adjustments. Not every comparable needs to be personally remeasured, but relevant limitations should be disclosed.
Real-World Application
An appraiser notices that tax records show one comparable at 1,600 square feet while the MLS listing reports 1,850 square feet including a finished basement. The appraiser checks the measurement basis and finds the tax figure excludes below-grade space. The appraiser uses consistent above-grade GLA and adjusts for the basement separately.
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