When a comparable requires an adjustment the appraiser cannot support, the best course is:
Correct Answer
B) Seek a better comparable, or disclose the limitation
Why this is correct: The appraiser should first seek a better comparable that doesn't require the unsupported adjustment. If that's not possible, the limitation must be clearly disclosed in the report. Why the other choices are wrong: Applying a conservative estimate without comment is still an unsupported guess. Omitting the line item entirely misrepresents the analysis. Using the assessor's value is not market-derived evidence. Exam tip: No support? Find a new comp or disclose the gap. Never guess silently.
Why This Is the Correct Answer
Why this is correct: The appraiser should first seek a better comparable that doesn't require the unsupported adjustment. If that's not possible, the limitation must be clearly disclosed in the report. Why the other choices are wrong: Applying a conservative estimate without comment is still an unsupported guess. Omitting the line item entirely misrepresents the analysis. Using the assessor's value is not market-derived evidence. Exam tip: No support? Find a new comp or disclose the gap. Never guess silently.
More Sales Comparison Questions
Excess land differs from surplus land in that excess land:
A paired sales analysis reveals that homes with stainless-steel appliances sell for $2,100 more than identical homes with standard appliances — but only when the homes are priced below $350,000. In the subject’s neighborhood, median sale price is $410,000. What is the appraiser’s obligation regarding the $2,100 appliance adjustment?
GLA differs by 210 sq ft between subject and comparable. Paired sales support $65 per sq ft of living area. The line adjustment is:
Paired sales are drawn from transactions six months apart in a stable market. The time adjustment needed is:
The most appropriate unit of comparison is determined by:
A comparable superior to the subject in every adjusted category should produce an indication that is:
Three sales support $520,000; the borrower's purchase contract is $505,000. May the appraisal conclude above the contract price?
A comparable sold for $300,000 with the seller carrying a loan 2 points below market, a benefit worth $8,000. What is its cash-equivalent price?
Why is a foreclosure sale generally a poor comparable in a stable market?
A comparable sold 8 months ago for $250,000 in a market appreciating 6% per year. What is the time-adjusted price?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam