http://commerce.appraisalfoundation.org/html/USPAP2008/FAQ/FAQ_Table_of_Contents.htm
FREQUENTLY ASKED QUESTIONS
144. Pending Sales as Comparables
Question:
Can a pending sale be used as a comparable if the fact that the sale is pending is disclosed in the appraisal report?
Response:
Yes. USPAP does not require the use of a pending sale as a comparable, but USPAP also does not prohibit such use. If the pending sale is of the subject property, however, the appraiser is required by Standards Rule 1-5(a) to consider the pending sale of the subject property in the development of a real property appraisal. Standards Rule 1-1(b) requires that an appraiser:
not commit a substantial error of omission or commission that significantly affects an appraisal;
Not considering a pending sale of a property highly similar to the subject property could constitute an omission that would significantly affect the appraisal. USPAP requires appraisers to be complete in their analysis and convey that analysis in a way that is not misleading. Details of pending sales information, by their very nature, are often confidential. The appraiser must take care not to disclose information that he or she knows is confidential.
TABLE OF CONTENTS
FREQUENTLY ASKED QUESTIONS
144. Pending Sales as Comparables
Question:
Can a pending sale be used as a comparable if the fact that the sale is pending is disclosed in the appraisal report?
Response:
Yes. USPAP does not require the use of a pending sale as a comparable, but USPAP also does not prohibit such use. If the pending sale is of the subject property, however, the appraiser is required by Standards Rule 1-5(a) to consider the pending sale of the subject property in the development of a real property appraisal. Standards Rule 1-1(b) requires that an appraiser:
not commit a substantial error of omission or commission that significantly affects an appraisal;
Not considering a pending sale of a property highly similar to the subject property could constitute an omission that would significantly affect the appraisal. USPAP requires appraisers to be complete in their analysis and convey that analysis in a way that is not misleading. Details of pending sales information, by their very nature, are often confidential. The appraiser must take care not to disclose information that he or she knows is confidential.
TABLE OF CONTENTS