Once data has been gathered, what is necessary for a credible value by the sales comparison approach?

• A. The verification of data
• B. An expert third-party audit
• C. A market trend analysis
• D. A capitalization of rents

Answer: (A)

Verification ensures the data used in the sales comparison approach is credible and reliable. After gathering sale data and terms, the appraiser checks sources, confirms details, and cross-checks accuracy to make sure the comparables truly reflect market conditions and the subject’s characteristics. This step reduces the risk of relying on erroneous or biased information and supports justified adjustments, leading to a more defensible value.

Other options don’t fit this specific credibility need: market trend analysis provides context on value movement but doesn’t verify data accuracy, capitalization of rents is used in the income approach, and a third‑party audit, while possible in some engagements, isn’t the standard requirement to establish credibility of data in the sales comparison approach.