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
An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?
Reconciliation of the approaches to value is best described as which activity?
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Which of the following is a written report option named in the current edition of USPAP?
What distinguishes qualitative from quantitative analysis in the sales comparison approach?
Why should the reconciliation address the quantity of evidence as well as its quality?
An appraisal report includes an addendum explaining the adjustment derivation. How does this affect compliance?
An extraordinary assumption proves false after the report is delivered. What follows?
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