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

When an agreement of sale is known, an appraiser is required to analyze it as part of the sales history. This is because the agreement of sale provides crucial information about the transaction that occurred or will occur, which can offer insights into market behavior, buyer motivations, and the terms of the sale.

Incorporating this information allows the appraiser to evaluate how it affects the overall valuation of the property. By assessing the details of the agreement, such as the sale price, contingencies, and any special conditions, the appraiser can more accurately position the property within the context of similar sales in the area. This analysis contributes to a more comprehensive and accurate appraisal report, aligning with the principles of transparency and accuracy that USPAP emphasizes in the appraisal process.

In summary, the correct approach requires appraisers to thoughtfully analyze any known agreement of sale to support their appraisal conclusions effectively. This practice is essential for maintaining the integrity and reliability of the appraisal process.