An appraiser weights three value indications of $2,480,000, $2,310,000 and $2,650,000 at 60%, 25% and 15%, respectively. What is the weighted indication?
Correct Answer
D) $2,463,000
Multiply each indication by its assigned weight and sum: $2,480,000 × 0.6 + $2,310,000 × 0.25 + $2,650,000 × 0.15 = $2,463,000. These weights are given, not prescribed by property type.
Why This Is the Correct Answer
Option D is correct because $2,480,000 × 0.60 = $1,488,000, $2,310,000 × 0.25 = $577,500, and $2,650,000 × 0.15 = $397,500. Adding them gives $1,488,000 + $577,500 + $397,500 = $2,463,000.
Why the Other Options Are Wrong
Option A: $2,480,000
Option A, $2,480,000, is the first indication alone, the one carrying 60% weight. The other two indications also contribute, so the weighted sum is $2,463,000.
Option B: $2,539,500
Option B, $2,539,500, applies the weights in reverse order: $2,480,000 × 0.15 + $2,310,000 × 0.25 + $2,650,000 × 0.60 = $372,000 + $577,500 + $1,590,000 = $2,539,500. Matching each weight to its stated indication gives $2,463,000.
Option C: $2,403,500
Option C, $2,403,500, swaps the first two weights: $2,480,000 × 0.25 + $2,310,000 × 0.60 + $2,650,000 × 0.15 = $620,000 + $1,386,000 + $397,500 = $2,403,500. The 60% weight belongs to $2,480,000, which gives $2,463,000.
Pair each weight, then add
Write each indication next to its own weight before multiplying, so no weight lands on the wrong figure.
How to use: Use this whenever a question lists indications and weights "in the same order".
Exam Tip
Line up each weight with its indication in the stated order before multiplying; mismatched weights still give answers inside the range, so a range check alone will not catch them.
Common Mistakes to Avoid
- -Choosing the most heavily weighted indication as the answer
- -Applying the weights in the wrong order
- -Swapping two weights between indications
Concept Deep Dive
Analysis
This question tests weighted-average arithmetic with three indications and stated weights. Multiply each indication by its matching weight, in the stated order, and add the products. The weights are stated in the facts and are not prescribed by property type.
Background Knowledge
A weighted average of indications falls between the lowest and highest indications when the weights are positive and total 100%. In actual reconciliation, weights reflect applicability and data reliability and should be explained rather than applied formulaically.
Real-World Application
Reviewing a report on a large single-family house, a reviewer recomputes the weighted reconciliation and finds the appraiser applied the 60% weight to the wrong approach. The reviewer asks the appraiser to correct the table and the conclusion.
More Reconciliation Questions
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Previous Question
Indications are sales comparison $480,000, cost $500,000 and income $460,000. The appraiser gave the income approach 10% weight and reconciled to $484,000 with a weighted average. What weight did the sales comparison approach receive?
Next Question
Within the sales comparison approach, Sale X needs one market-supported adjustment of $46,000 for gross living area, about 11% of its $418,000 sale price. Sale Y needs three market-supported adjustments for garage, porch and a half bath that total $12,600 in absolute terms, about 3% of its $420,000 sale price. Which sale deserves more weight?