Why are adjustments for the same feature ideally consistent across all comparables in a grid?
Correct Answer
B) Inconsistency suggests the adjustments are being tuned to a target value
Why this is correct: Inconsistent adjustments for the same feature across comparables can indicate the adjustments are being manipulated to reach a predetermined value, undermining the appraisal's credibility. Why the other choices are wrong: Reviewers do not add columns for fun. Software does not inherently reject unequal entries. Consistency is a general principle, not limited only to GLA adjustments. Exam tip: Apply market-derived adjustment rates uniformly unless a documented exception justifies a difference.
Why This Is the Correct Answer
Why this is correct: Inconsistent adjustments for the same feature across comparables can indicate the adjustments are being manipulated to reach a predetermined value, undermining the appraisal's credibility. Why the other choices are wrong: Reviewers do not add columns for fun. Software does not inherently reject unequal entries. Consistency is a general principle, not limited only to GLA adjustments. Exam tip: Apply market-derived adjustment rates uniformly unless a documented exception justifies a difference.
More sales-comparison-approach Questions
Excess land differs from surplus land in that excess land:
A subject property has a 3-car attached garage. The appraiser locates two valid paired sales: Sale 1 (with 3-car garage) sold for $512,000; Sale 2 (with 2-car garage) sold for $497,600. Both properties are otherwise identical β same age, quality, GLA, lot size, and neighborhood β and sold 5 days apart in a balanced market. The appraiser also confirms via public records and listing photos that no other functional or physical differences exist. What is the indicated contributory value of the *third* garage stall?
The most appropriate unit of comparison is determined by:
An appraiser analyzes three paired sales to isolate the effect of a fireplace. In Pair 1, the property with a fireplace sold for $12,000 more; in Pair 2, $10,500 more; and in Pair 3, $13,500 more. All pairs are highly similar and recent. The appraiser selects $12,000 as the final adjustment. Which principle best supports this selection?
A paired sales analysis yields an adjustment of β$15,000 for a property located on a busy arterial street. Later, the appraiser discovers that all three paired properties with arterial exposure also had 20% smaller lots than their non-arterial counterparts β a difference not initially controlled for. What is the most appropriate action per USPAP?
An appraiser identifies two comparable sales that are identical in all respects except that Sale #1 has a finished basement (1,200 sq ft) and sold for $432,000, while Sale #2 has an unfinished basement of the same size and sold for $408,000. Both sales occurred within three weeks of each other in a stable market. The appraiser intends to apply a per-square-foot adjustment for basement finish to the subject property, which has a 1,000 sq ft finished basement. What is the appropriate paired-sales-derived adjustment amount per square foot for a finished basement?
Three sales support $520,000; the borrower's purchase contract is $505,000. May the appraisal conclude above the contract price?
An appraiser develops a $3,200 adjustment for a fireplace based on a single paired sale. The subject has a fireplace; Comparable A does not. The appraiser applies +$3,200 to Comparable A. Later, the appraiser identifies a second pair showing a $4,600 fireplace contribution. The appraiser replaces the original adjustment with $3,900 β the simple average β and applies it to Comparable A. What is the appropriate USPAP-compliant action regarding the adjustment amount?
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?
Three comparables adjust to $412,000 (gross adj. 5%), $405,000 (gross adj. 22%), and $410,000 (gross adj. 8%). What is the best-supported value conclusion?
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Previous Question
An appraiser performs paired sales analysis for HVAC systems and identifies three valid pairs: (1) forced-air gas furnace vs. no central HVAC: $12,000 difference; (2) heat pump vs. no central HVAC: $14,500 difference; (3) forced-air gas furnace vs. heat pump: $2,200 difference. All pairs control for age, size, and location. Which conclusion is most directly supported by this paired data?
Next Question
An appraiser is analyzing paired sales for view premium in a coastal subdivision. She identifies two ocean-view properties (A and B) and two non-view properties (C and D), all built by the same developer, same floor plan (2,400 sq ft), same year, and same lot size (0.18 acre). Sales prices and dates: A (view, 6/12) = $824,000; B (view, 6/18) = $819,000; C (non-view, 6/10) = $712,000; D (non-view, 6/20) = $708,000. Assuming no time adjustment is needed due to market stability, what is the median view premium indicated by the four possible paired combinations (AβC, AβD, BβC, BβD)?
