An appraiser writes only that the sales comparison approach was given most weight. What is missing?
Correct Answer
D) The reasoning that led to that weighting
Why this is correct: USPAP and sound reporting practice require the appraiser to communicate the rationale for the reconciliation. Simply stating which approach was weighted most heavily does not explain the reasoning behind that professional judgment. Why the other choices are wrong: 'The dollar amount each approach contributed' is not required; the reasoning is key. 'A statement of the client's preferred approach' is irrelevant to the appraiser's independent analysis. 'A recalculation of the other two approaches' is unnecessary; the original development should stand. Exam tip: Your reconciliation must answer "why?" not just "what?" Explain your reasoning for the weighting.
Why This Is the Correct Answer
Why this is correct: USPAP and sound reporting practice require the appraiser to communicate the rationale for the reconciliation. Simply stating which approach was weighted most heavily does not explain the reasoning behind that professional judgment. Why the other choices are wrong: 'The dollar amount each approach contributed' is not required; the reasoning is key. 'A statement of the client's preferred approach' is irrelevant to the appraiser's independent analysis. 'A recalculation of the other two approaches' is unnecessary; the original development should stand. Exam tip: Your reconciliation must answer "why?" not just "what?" Explain your reasoning for the weighting.
More reconciliation Questions
An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?
Reconciliation of the approaches to value is best described as which activity?
Significant appraisal assistance from a person who does not sign the report must be treated how?
In appraising a hotel as a going concern, what must be allocated?
What does it mean to say an approach is not applicable to an assignment?
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?
An appraisal report includes an addendum explaining the adjustment derivation. How does this affect compliance?
An extraordinary assumption proves false after the report is delivered. What follows?
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