A model and a completed sales grid produce nearly identical figures. What does this establish?
Correct Answer
D) It is supportive, but shared data may hide a common error
Similar indications are evidence to evaluate, not proof. Investigate whether the model and grid share inputs, assumptions or errors before treating their agreement as independent corroboration. Reconciliation considers the support and applicability of each analysis, and reporting must be sufficient for the intended use. Neither numerical agreement nor a good fit statistic waives that judgment.
Why This Is the Correct Answer
Option D is correct because agreement between a model and a sales grid is supportive, but shared data may hide a common error. If both analyses use the same sales or assumptions, a mistake in those inputs would affect both equally. Reconciliation still weighs the support and applicability of each analysis.
Why the Other Options Are Wrong
Option A: Both methods are confirmed correct by their agreement
Option A says both methods are confirmed correct by their agreement. Two analyses can agree and both be wrong if they share flawed inputs or assumptions.
Option B: The sales comparison grid can be left out of the report
Option B says the sales comparison grid can be left out of the report. Agreement with a model does not reduce the reporting needed for the intended use.
Option C: The model is validated for future assignments in this market
Option C says the model is validated for future assignments in this market. One instance of agreement does not validate a model for other properties, dates or assignments.
Agreement is not independence
Two witnesses who read the same wrong note will agree. Check whether the analyses truly stand on separate evidence.
How to use: Use this when a question treats matching results as proof.
Exam Tip
Answers that treat agreement as final proof, or as a reason to drop analysis, are usually wrong. Look for the one that weighs the agreement while checking for shared errors.
Common Mistakes to Avoid
- -Treating matching indications as proof of accuracy
- -Dropping one analysis from the report because results agree
- -Assuming one good result validates a model going forward
Concept Deep Dive
Analysis
This question tests how to interpret agreement between two valuation analyses. Similar indications are supportive evidence, not proof, especially if both rely on the same inputs. The appraiser should check whether shared data or assumptions could produce a common error before treating the agreement as independent corroboration.
Background Knowledge
Reconciliation evaluates the quality, quantity and applicability of evidence behind each value indication. Corroboration is stronger when analyses rely on independent data and methods. Shared inputs can create the appearance of agreement while concealing a common error.
Real-World Application
An appraiser's regression model and sales grid both indicate about the same value. On review, the appraiser finds both used a sale whose recorded price included a large seller credit that was not adjusted. Correcting the input changes both indications, showing the agreement had masked a shared error.
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