The reconciliation narrative should explain:
Correct Answer
B) Why particular comparables received more weight
Why this is correct: The reconciliation narrative's core purpose is to document the appraiser's reasoning, leading the reader from the sales data to the final value conclusion. As the original explanation states, explaining 'why particular comparables received more weight' is the essential work of this section, making the judgment process transparent and credible. Why the other choices are wrong: Explaining 'The fee the appraiser charged for the work' is a business matter irrelevant to the valuation analysis. Describing 'The client's expectations for the value' is prohibited, as an appraisal must be objective and unbiased, not influenced by client pressure. Listing 'Every sale that was considered and rejected' in detail is unnecessary; only a brief mention of rejected sales is needed, as the focus must be on the analysis of the comparables used. Exam tip: In reconciliation, always emphasize your rationale for weighting adjustments and selecting the most indicative comparables—this demonstrates professional judgment.
Why This Is the Correct Answer
Why this is correct: The reconciliation narrative's core purpose is to document the appraiser's reasoning, leading the reader from the sales data to the final value conclusion. As the original explanation states, explaining 'why particular comparables received more weight' is the essential work of this section, making the judgment process transparent and credible. Why the other choices are wrong: Explaining 'The fee the appraiser charged for the work' is a business matter irrelevant to the valuation analysis. Describing 'The client's expectations for the value' is prohibited, as an appraisal must be objective and unbiased, not influenced by client pressure. Listing 'Every sale that was considered and rejected' in detail is unnecessary; only a brief mention of rejected sales is needed, as the focus must be on the analysis of the comparables used. Exam tip: In reconciliation, always emphasize your rationale for weighting adjustments and selecting the most indicative comparables—this demonstrates professional judgment.
More sales-comparison-approach Questions
Excess land differs from surplus land in that excess land:
A subject property has a 3-car attached garage. The appraiser locates two valid paired sales: Sale 1 (with 3-car garage) sold for $512,000; Sale 2 (with 2-car garage) sold for $497,600. Both properties are otherwise identical — same age, quality, GLA, lot size, and neighborhood — and sold 5 days apart in a balanced market. The appraiser also confirms via public records and listing photos that no other functional or physical differences exist. What is the indicated contributory value of the *third* garage stall?
The most appropriate unit of comparison is determined by:
An appraiser analyzes three paired sales to isolate the effect of a fireplace. In Pair 1, the property with a fireplace sold for $12,000 more; in Pair 2, $10,500 more; and in Pair 3, $13,500 more. All pairs are highly similar and recent. The appraiser selects $12,000 as the final adjustment. Which principle best supports this selection?
A paired sales analysis yields an adjustment of −$15,000 for a property located on a busy arterial street. Later, the appraiser discovers that all three paired properties with arterial exposure also had 20% smaller lots than their non-arterial counterparts — a difference not initially controlled for. What is the most appropriate action per USPAP?
An appraiser identifies two comparable sales that are identical in all respects except that Sale #1 has a finished basement (1,200 sq ft) and sold for $432,000, while Sale #2 has an unfinished basement of the same size and sold for $408,000. Both sales occurred within three weeks of each other in a stable market. The appraiser intends to apply a per-square-foot adjustment for basement finish to the subject property, which has a 1,000 sq ft finished basement. What is the appropriate paired-sales-derived adjustment amount per square foot for a finished basement?
Three sales support $520,000; the borrower's purchase contract is $505,000. May the appraisal conclude above the contract price?
An appraiser develops a $3,200 adjustment for a fireplace based on a single paired sale. The subject has a fireplace; Comparable A does not. The appraiser applies +$3,200 to Comparable A. Later, the appraiser identifies a second pair showing a $4,600 fireplace contribution. The appraiser replaces the original adjustment with $3,900 — the simple average — and applies it to Comparable A. What is the appropriate USPAP-compliant action regarding the adjustment amount?
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An appraiser identifies two comparable sales that are identical in all respects except that Sale #1 has a finished basement (1,200 sq ft) and sold for $432,000, while Sale #2 has an unfinished basement of the same size and sold for $408,000. Both sales occurred within three weeks of each other in a stable market. The appraiser intends to apply a per-square-foot adjustment for basement finish to the subject property, which has a 1,000 sq ft finished basement. What is the appropriate paired-sales-derived adjustment amount per square foot for a finished basement?