Property Valuation
An Arizona appraiser who uses only 2 comparables in the sales comparison approach is:
ACompliant—2 comps is the minimum required
BPotentially providing an inadequate analysis—USPAP and lender guidelines typically require a minimum of 3 closed sales and may require more✓ Correct
CRequired to use exactly 3 comparables by state law
DProviding a valid analysis if the comps are very similar
Explanation
While USPAP doesn't specify a minimum number, lender guidelines (Fannie Mae, FHA) typically require at least 3 closed comparable sales. Using only 2 comps weakens the analysis and typically does not meet secondary market standards.
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