An automated valuation model returns a figure differing sharply from the appraiser's conclusion. What is the appropriate response?
Correct Answer
C) Consider what the model may not have captured
Why this is correct: Consider what the model may not have captured. The governing concept is analytical review. Automated Valuation Models (AVMs) rely on quantitative data and may miss qualitative factors (condition, view, updates) or have outdated data. A divergence should prompt investigation into both the model's limitations and the appraiser's own data. Why the other choices are wrong: Adopt the model output as objective evidence is wrong without independent verification; the appraiser must maintain accountability. Report both figures and let the client decide abdicates the appraiser's responsibility to form and defend a conclusion. Disregard the model, as such tools are unreliable is an unsupported dismissal; AVMs can provide useful market context. Exam tip: An AVM divergence is a prompt to double-check your data and consider unquantified property attributes.
Why This Is the Correct Answer
Why this is correct: Consider what the model may not have captured. The governing concept is analytical review. Automated Valuation Models (AVMs) rely on quantitative data and may miss qualitative factors (condition, view, updates) or have outdated data. A divergence should prompt investigation into both the model's limitations and the appraiser's own data. Why the other choices are wrong: Adopt the model output as objective evidence is wrong without independent verification; the appraiser must maintain accountability. Report both figures and let the client decide abdicates the appraiser's responsibility to form and defend a conclusion. Disregard the model, as such tools are unreliable is an unsupported dismissal; AVMs can provide useful market context. Exam tip: An AVM divergence is a prompt to double-check your data and consider unquantified property attributes.
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