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
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?
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?
A client sends comments disputing the appraiser's adjustment for condition. What is the appropriate response?
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