Uniform Standards of Professional Appraisal Practice (USPAP) Practice Exam

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What must an appraiser analyze when developing a sales comparison approach?

  1. Only the subject property's sales history

  2. The sales history of the nearby properties

  3. The available data to indicate a value conclusion

  4. The expected future sales trends

The correct answer is: The available data to indicate a value conclusion

In developing a sales comparison approach, an appraiser must analyze the available data to indicate a value conclusion. This involves examining various elements such as recent sales of comparable properties, adjustments based on differences between the subject property and those comparable sales, and current market conditions. The appraiser utilizes this comprehensive data to arrive at a credible opinion of value. While the sales history of the subject property and nearby properties can provide relevant insights, they are subsets of the broader data analysis necessary for a thorough appraisal. Future sales trends may offer context but are not essential for formulating the immediate value conclusion, which primarily relies on past and present data. Hence, focusing on the entirety of available data ensures a more accurate and substantiated valuation outcome.

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