Two appraisers reach different value opinions on the same property with the same effective date. What does this show?
Correct Answer
B) Judgment differs even on identical evidence
Why this is correct: Appraisal involves professional judgment in selecting comparables, deriving adjustments, and weighting data. Two competent appraisers can legitimately arrive at different, yet credible, value opinions based on the same evidence and date. Why the other choices are wrong: "One of the two appraisers must have erred" assumes only one correct answer, which is false. "The property has two simultaneous market values" is incorrect; market value is an estimate, not a fixed number. "The later opinion supersedes the earlier one" is not true if both have the same effective date. Exam tip: Value is an opinion, not a fact; reasonable differences occur.
Why This Is the Correct Answer
Why this is correct: Appraisal involves professional judgment in selecting comparables, deriving adjustments, and weighting data. Two competent appraisers can legitimately arrive at different, yet credible, value opinions based on the same evidence and date. Why the other choices are wrong: "One of the two appraisers must have erred" assumes only one correct answer, which is false. "The property has two simultaneous market values" is incorrect; market value is an estimate, not a fixed number. "The later opinion supersedes the earlier one" is not true if both have the same effective date. Exam tip: Value is an opinion, not a fact; reasonable differences occur.
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
Previous Question
Five adjusted sales indicate $305,000 at 8% gross adjustment, $309,000 at 11%, $312,000 at 9%, $318,000 at 21% and $301,000 at 14%. The appraiser relies only on those requiring under 12% gross adjustment. What value do the retained sales indicate on average?
Next Question
What does it mean to say a value conclusion is credible?