In reconciling within a single approach, the appraiser considers:
Correct Answer
B) The reliability and relevance of each indication's data
Why this is correct: The reliability and relevance of each indication's data. Within an approach (e.g., reconciling multiple comparable sales), the appraiser must weigh each indication based on the quality and applicability of its data, not just the quantity. Why the other choices are wrong: Only the number of indications ignores data quality. Whichever indication is closest to the client's expectation violates impartiality. The order in which the comparables were researched is irrelevant to their analytical weight. Exam tip: Reconciliation is about judging data quality and relevance, not counting or sequencing.
Why This Is the Correct Answer
Why this is correct: The reliability and relevance of each indication's data. Within an approach (e.g., reconciling multiple comparable sales), the appraiser must weigh each indication based on the quality and applicability of its data, not just the quantity. Why the other choices are wrong: Only the number of indications ignores data quality. Whichever indication is closest to the client's expectation violates impartiality. The order in which the comparables were researched is irrelevant to their analytical weight. Exam tip: Reconciliation is about judging data quality and relevance, not counting or sequencing.
More Reconciliation Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam