USPAP Practice Exam 2025 – Complete All-in-One Guide to Mastering Professional Appraisal Standards

The approaches to value stipulated by USPAP are specifically recognized as the Cost, Sales Comps, and Income Capitalization methods, which are commonly used by appraisers to estimate property values.

The Cost approach involves determining the value based on the current cost to replace or reproduce the property, minus any depreciation. The Sales Comparison approach (often referred to as Sales Comps) involves comparing the subject property to similar properties that have recently sold in order to ascertain its value. The Income Capitalization approach is used primarily for investment properties, evaluating the income generated by the property to derive its overall value.

This combination of approaches is well-aligned with the USPAP standards, as they are essential methods for appraisers to provide a credible and well-supported valuation. The inclusion of these approaches helps ensure that the appraisals are thorough, accurate, and in compliance with industry standards.

The other options present variations that do not fully encompass the recognized methods stipulated by USPAP or mischaracterize aspects of these approaches, which is why they do not align as closely or completely with USPAP's guidelines.