Is it true or false that Standards Rule 1-5 requires an appraiser to analyze the sales history of comparable sales?

Standards Rule 1-5, as outlined in the Uniform Standards of Professional Appraisal Practice (USPAP), does not mandate that an appraiser analyze the sales history of comparable sales as a blanket requirement. Instead, this rule emphasizes the necessity for appraisers to analyze relevant characteristics of the property being appraised and the comparable properties, which may include their sales history. However, whether the sales history of comparable sales needs to be analyzed often depends on the specific circumstances of the appraisal assignment and the approach the appraiser determines is appropriate for meeting the valuation objectives.

In many instances, appraisers might choose to review the sales history of comparables as part of their market analysis and in assessing the validity of sales data, but this is not a strict requirement of the rule. The decision to analyze such data can be influenced by various factors such as the type of property, market conditions, and the scope of the appraisal. Thus, stating that the requirement exists as an overarching rule is incorrect, making the response accurate in relation to the stipulations found in Standards Rule 1-5.