A 2015 study by Fannie Mae and the University of Cincinnati indicated that appraisers often place more weight on which type of sales in order to meet the contract price?

• A. Lower priced sales
• B. Higher priced sales
• C. Median priced sales
• D. Unrelated sales

Answer: (B)

When appraisers weigh comparable sales, the tendency highlighted is to tilt weight toward higher-priced sales, especially when aiming to meet a contract price. The idea is that using more high-priced comps can justify a higher value that matches what buyers are paying in that contract, which can pressure the appraisal toward the contract price rather than reflecting typical market conditions. This introduces bias, because the goal of an appraisal is to reflect true market value based on relevant, comparable data, not to validate a negotiated price.

If lower-priced sales were given more weight, the appraisal would trend downward toward the contract price in that direction; using median-priced sales would not specifically push toward the contract price, and unrelated sales are not appropriate comparables because they don’t reflect the property’s actual market segment. The study’s takeaway is that higher-priced sales are the ones most likely to influence the appraisal upward, which is why that option is correct.