Per-square-foot indications point to $402,000 while whole-price indications point to $418,000. The appraiser should:
Correct Answer
D) Investigate the divergence — the units disagree for a reason
Why this is correct: A divergence between per-square-foot and whole-price indications signals a problem, such as incorrect size adjustments or comparables outside the subject's size range. Investigation is required. Why the other choices are wrong: Adopt the per-square-foot figure, being the more precise measure is wrong; precision doesn't equal accuracy. Average the two indications to $410,000 without further analysis hides the issue. Report both and let the intended user select one of them abdicates the appraiser's reconciliation duty. Exam tip: Reconciliation resolves differences; averaging is not reconciliation.
Why This Is the Correct Answer
Why this is correct: A divergence between per-square-foot and whole-price indications signals a problem, such as incorrect size adjustments or comparables outside the subject's size range. Investigation is required. Why the other choices are wrong: Adopt the per-square-foot figure, being the more precise measure is wrong; precision doesn't equal accuracy. Average the two indications to $410,000 without further analysis hides the issue. Report both and let the intended user select one of them abdicates the appraiser's reconciliation duty. Exam tip: Reconciliation resolves differences; averaging is not reconciliation.
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