What should the reconciliation section explain to the reader?
Correct Answer
D) Why the indications received the weight they did
Why this is correct: The reconciliation section explains the appraiser's reasoning for assigning specific weights to the value indications from different approaches, leading to the final opinion of value. It is the narrative of professional judgment. Why the other choices are wrong: Mathematical computations are detailed within each approach section. The client's hypothetical choices are irrelevant. The fee allocation is not part of the appraisal analysis. Exam tip: Reconciliation tells the story of 'why' you reached your conclusion, not 'how' you did the calculations.
Why This Is the Correct Answer
Why this is correct: The reconciliation section explains the appraiser's reasoning for assigning specific weights to the value indications from different approaches, leading to the final opinion of value. It is the narrative of professional judgment. Why the other choices are wrong: Mathematical computations are detailed within each approach section. The client's hypothetical choices are irrelevant. The fee allocation is not part of the appraisal analysis. Exam tip: Reconciliation tells the story of 'why' you reached your conclusion, not 'how' you did the calculations.
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?
Significant appraisal assistance from a person who does not sign the report must be treated how?
In appraising a hotel as a going concern, what must be allocated?
What does it mean to say an approach is not applicable to an assignment?
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?
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
USPAP (Ethics & Standards)
15% of exam