Two data sources report different sale prices for the same transaction. What should the appraiser do?
Correct Answer
D) Resolve the conflict by verifying the transaction
Why this is correct: Discrepancies in sale prices must be resolved by verification (e.g., reviewing the deed, contacting a party) to determine the accurate, market-supported price. Using unverified or conflicting data undermines the reliability of the analysis. Why the other choices are wrong: 'Use whichever price supports the value conclusion' is unethical and violates USPAP's requirement for objectivity. 'Average the two figures into a single sale price' creates a fictional transaction price not supported by the market. 'Exclude the sale from the analysis altogether' may be appropriate only after verification reveals it is non-market or unreliable; exclusion should not be the first step. Exam tip: Never average conflicting data. Always seek primary source verification to resolve discrepancies.
Why This Is the Correct Answer
Why this is correct: Discrepancies in sale prices must be resolved by verification (e.g., reviewing the deed, contacting a party) to determine the accurate, market-supported price. Using unverified or conflicting data undermines the reliability of the analysis. Why the other choices are wrong: 'Use whichever price supports the value conclusion' is unethical and violates USPAP's requirement for objectivity. 'Average the two figures into a single sale price' creates a fictional transaction price not supported by the market. 'Exclude the sale from the analysis altogether' may be appropriate only after verification reveals it is non-market or unreliable; exclusion should not be the first step. Exam tip: Never average conflicting data. Always seek primary source verification to resolve discrepancies.
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