An appraiser writes that the approaches were given equal weight because each was fully developed. What is wrong with this reasoning?
Correct Answer
B) Development effort is not evidence of reliability
Completing an approach is not evidence that its result is equally reliable. Compare relevance and data support and explain the weights. Equal weights are possible when supported, but neither development effort nor a blanket prohibition on cost provides the analytical basis.
Why This Is the Correct Answer
Option B is correct because completing an approach is not evidence that its result is equally reliable. Credible assignment results require support by relevant evidence and logic. The appraiser should compare relevance and data support and explain the weights.
Why the Other Options Are Wrong
Option A: Nothing, since developing all three requires equal weight
Option A says nothing is wrong because developing all three requires equal weight. Development does not require equal weight; weight depends on reliability and relevance.
Option C: Equal weighting is prohibited under Standard 2
Option C says equal weighting is prohibited under Standard 2. Equal weights are possible when the evidence supports them; the flaw here is the reasoning, not equal weighting itself.
Option D: The cost approach cannot receive equal weight
Option D says the cost approach cannot receive equal weight. There is no blanket prohibition on giving cost equal weight when its support justifies it.
Effort isn't evidence
Hours spent on an approach do not make its answer more trustworthy; only data quality and relevance do.
How to use: Use this when an option bases weight on how much work an approach took.
Exam Tip
Watch for reasoning that confuses process with support. Also be wary of options inventing a ban on equal weighting.
Common Mistakes to Avoid
- -Equating a fully developed approach with a reliable one
- -Believing equal weighting is banned outright
- -Assuming the cost approach is barred from receiving equal weight
Concept Deep Dive
Analysis
This question tests the flaw in giving equal weight because each approach was fully developed. Effort spent on an approach is not evidence that its result is reliable. Weight must come from relevance and data support.
Background Knowledge
Fannie Mae guidance calls for reconciling the reasonableness and reliability of each applicable approach and reporting which received the most weight. Effort and completeness do not substitute for that evaluation.
Real-World Application
A reviewer flags a report stating the three approaches were weighted equally because each was fully developed. The appraiser revises the reconciliation to explain that sales comparison had the strongest data and received the most weight.
More Reconciliation Questions
In a cost approach for an improved property, an appraiser estimates site value by sales comparison, allocation and extraction, then settles on one site-value figure before final reconciliation. How is this step best described?
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An otherwise applicable valuation approach cannot be developed reliably from the available data. The remaining scope can produce credible assignment results. What should the appraiser do?
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