A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
Correct Answer
D) Investigate what each analysis may have missed
A substantial discrepancy should prompt evaluation of inputs, assumptions, model applicability, comparable selection, and the appraiser’s analysis. Neither a model nor a manual analysis prevails simply because of its category. Resolve supported errors and weigh the reliability and relevance of the indications. A model shown to be inappropriate can receive no weight; mechanical adoption, rejection, or averaging without support does not constitute reasoned reconciliation.
Why This Is the Correct Answer
Option D is correct because a substantial discrepancy should prompt the appraiser to investigate what each analysis may have missed. The appraiser examines inputs, assumptions, model applicability, comparable selection and the appraiser's own work, resolves supported errors, and weighs each indication by its reliability and relevance.
Why the Other Options Are Wrong
Option A: Adopt the model figure as the more objective one
Option A adopts the model figure as the more objective one. A model does not prevail simply because it is automated, and mechanically adopting it without analysis is not reasoned reconciliation.
Option B: Report both and let the client choose between them
Option B reports both figures and lets the client choose. The appraiser, not the client, must reach a supported opinion, so handing the choice to the client abandons the analysis.
Option C: Disregard the model, since such tools are unreliable
Option C disregards the model because such tools are unreliable. A model shown to be inappropriate may receive no weight, but rejecting it by category without investigating is unsupported.
A gap is a clue
When two indications disagree, treat the gap as a clue to investigate, not a contest to declare a winner.
How to use: Use this idea for any question about conflicting value indications.
Exam Tip
Answers that mechanically adopt, reject or average results usually miss the point; look for the option that investigates and reconciles.
Common Mistakes to Avoid
- -Assuming a model figure is more objective by default
- -Averaging conflicting indications without support
- -Dismissing models as unreliable without analysis
Concept Deep Dive
Analysis
This question tests reconciliation when a model estimate and the appraiser's own analysis disagree. Neither source prevails just because of its category; differences do not necessarily mean the model is wrong, nor that the appraiser is right. The sound response is to investigate inputs, assumptions, applicability and comparable selection on both sides.
Background Knowledge
Reconciliation means weighing the quality and relevance of each indication. Differences between a model and a manual analysis can arise from data errors, unusual property features, comparable selection or model limits. Investigating the cause leads to a better-supported conclusion than adopting, rejecting or averaging figures mechanically.
Real-World Application
An appraiser concludes a value well above an AVM estimate. Investigation shows the AVM relied on outdated square footage that omitted a permitted addition, and the appraiser also confirms a comparable was correctly adjusted, then documents why the AVM receives little weight.
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