An appraiser reconciles a gross rent multiplier indication with a direct capitalization indication. What matters most?

Correct Answer

B) Which rests on the better supported market data

Why this is correct: When reconciling different value indications, the most reliable figure is the one based on the highest quality and most relevant market data. For example, a gross rent multiplier derived from numerous, very similar rental comparables is stronger than a capitalization rate based on only a few dissimilar sales, regardless of which figure aligns with another approach. Why the other choices are wrong: The choice focusing on which figure is closer to the sales comparison result is incorrect; agreement is corroborative but not the primary selection criterion. The choice about which produces the more conservative conclusion is wrong; the goal is a credible market value, not conservatism. The choice about which required fewer calculations is false; the depth of analysis, not its simplicity, determines reliability. Exam tip: In reconciliation, the quality of the underlying data is paramount.