Property Valuation
An appraiser in Colorado finds only two sales of similar properties in the past 6 months. To find more comparables, the appraiser might:
AA. Make up comparables to meet USPAP requirements
BB. Expand the search to a larger geographic area, extend the time frame, or use sales of slightly less similar properties with larger adjustments✓ Correct
CC. Only use the cost approach
DD. Refuse to complete the assignment
Explanation
When there are limited comparables, an appraiser may expand the geographic search area, extend the time period of the search, or use properties that are somewhat less similar with larger adjustments — as long as the comparables are still relevant to the market. All decisions must be explained and justified in the report per USPAP.
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