USPAP Practice Exam 2026 – Complete All-in-One Guide to Mastering Professional Appraisal Standards

In a market value assignment, the appraiser's analysis is fundamentally built on available comparable sales. Comparable sales, often referred to as "comps," provide critical data that helps establish a property's market value based on similar properties that have sold recently in the vicinity. The assessment of these sales allows the appraiser to determine a fair market value by analyzing features such as location, size, condition, and amenities. The principle of substitution underpins this approach, indicating that a prudent buyer would not pay more for a property than the cost to acquire an equally desirable alternative. Hence, while current market conditions, the appraiser's prior experience, and regulatory updates may inform the analysis, the actual calculations and conclusions are directly derived from observing and acquiring comparable sales data.