A narrative report includes property description, market analysis, individual approaches and reconciliation discussions. Which belongs in the reconciliation discussion?
Correct Answer
B) The final value and the reasoning behind how indications were treated.
The reconciliation discussion explains how the applicable indications and evidence support the value conclusion. Property and market information may be relevant to that reasoning, but a factual description alone does not perform reconciliation. USPAP does not prescribe this particular heading or outline.
Why This Is the Correct Answer
Option B is correct because reconciliation addresses the applicability and relevance of the approaches used to arrive at the value conclusion. The discussion states the final value and explains how each indication was weighed and why. That reasoning is the core function of reconciliation.
Why the Other Options Are Wrong
Option A: The physical dimensions of the building and each of its rooms.
Option A, the physical dimensions of the building and each room, is property description. It may inform the analysis, but listing dimensions does not reconcile any value indications.
Option C: The zoning classification and site description, without any analysis.
Option C, the zoning classification and site description without analysis, is factual site information. Presenting it without analysis does not evaluate the indications or support the final value.
Option D: A list of the comparable sales’ street addresses and sale dates.
Option D, a list of comparable sales' street addresses and sale dates, is data that belongs with the sales comparison analysis. A list of addresses and dates does not explain how indications were weighed.
Reconcile means reason
Description says what the property is; reconciliation says why the value is what it is.
How to use: Use this to sort report content between descriptive sections and the reconciliation discussion.
Exam Tip
Choose the option that involves explaining weight and reaching a conclusion; pure facts without analysis rarely belong in reconciliation.
Common Mistakes to Avoid
- -Restating property facts in place of reconciliation reasoning
- -Reporting a final value without explaining the weighting
- -Assuming USPAP requires a specific reconciliation heading or format
Concept Deep Dive
Analysis
This question tests what the reconciliation discussion actually does in a narrative report. Reconciliation explains how the applicable indications and the quality of their data support the final value conclusion. Factual descriptions of the building, site or comparables belong in other sections unless they are used in that reasoning.
Background Knowledge
Reconciliation considers the quality and quantity of data in each approach and the applicability and relevance of the approaches to reach a value conclusion. In a narrative report it typically ties together the earlier sections. USPAP does not prescribe a specific heading or outline, but the reasoning must be communicated.
Real-World Application
A reviewer finds that an appraiser's reconciliation section simply repeats the room count and site size. The reviewer asks for a revision explaining why the sales comparison approach received most weight and how the final value was selected. The revised section supports the conclusion instead of restating facts.
More Reconciliation Questions
An appraiser signs, finalizes and electronically transmits a residential appraisal report to the client on March 15. Its value opinion has a March 1 effective date. The client does not open the transmitted report until March 20. What is the report date?
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According to AQB criteria, what is the minimum number of classroom hours of qualifying education required for a Certified Residential appraiser?
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A state appraiser regulatory agency is reviewing an appraiser's continuing education compliance. The appraiser completed 28 hours of continuing education in the current two-year period, including 5 hours of USPAP update training. Does this meet AQB requirements?
According to USPAP Standard 2, which of the following is NOT a required element in an appraisal report?
A client asks an appraiser to raise a completed report’s value conclusion by $15,000 solely to match the contract price, without providing new evidence. What should the appraiser do?
A comparable-sale grid includes a $5,000 bathroom adjustment. Which treatment best supports clear appraisal reporting?
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