An appraiser has strong sales data but the client emphasises the cost approach. How should weight be assigned?
Correct Answer
A) According to the evidence, not the client's preference
Why this is correct: The appraiser's reconciliation must reflect independent professional judgment based on the quality and relevance of the data for the specific assignment. Client preference does not override this judgment. Why the other choices are wrong: "According to the client's stated requirements" would compromise objectivity. "Equally, to avoid disappointing either position" is arbitrary if data strength differs. "To the cost approach, since the client is paying" improperly subordinates judgment to client influence. Exam tip: Weighting is based on evidential support, not client preference.
Why This Is the Correct Answer
Why this is correct: The appraiser's reconciliation must reflect independent professional judgment based on the quality and relevance of the data for the specific assignment. Client preference does not override this judgment. Why the other choices are wrong: "According to the client's stated requirements" would compromise objectivity. "Equally, to avoid disappointing either position" is arbitrary if data strength differs. "To the cost approach, since the client is paying" improperly subordinates judgment to client influence. Exam tip: Weighting is based on evidential support, not client preference.
More reconciliation Questions
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Reconciliation of the approaches to value is best described as which activity?
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Which of the following is a written report option named in the current edition of USPAP?
What distinguishes qualitative from quantitative analysis in the sales comparison approach?
Why should the reconciliation address the quantity of evidence as well as its quality?
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An extraordinary assumption proves false after the report is delivered. What follows?
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