When two approaches produce widely divergent indications, Standards require the appraiser to:
Correct Answer
C) Analyze the divergence rather than simply average it
Why this is correct: USPAP Standards require reconciliation, which is an analysis of the reliability and applicability of each approach, not mechanical averaging. Why the other choices are wrong: Reporting without reconciliation fails to provide a credible opinion. Discarding an indication without analysis is improper. Client preference cannot determine the value conclusion. Exam tip: Reconcile by analyzing why approaches differ, not by averaging or ignoring the difference.
Why This Is the Correct Answer
Why this is correct: USPAP Standards require reconciliation, which is an analysis of the reliability and applicability of each approach, not mechanical averaging. Why the other choices are wrong: Reporting without reconciliation fails to provide a credible opinion. Discarding an indication without analysis is improper. Client preference cannot determine the value conclusion. Exam tip: Reconcile by analyzing why approaches differ, not by averaging or ignoring the difference.
More USPAP Questions
Which statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
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A value opinion for a subdivision as if fully built out two years from now is what kind of assignment, and what does it require?
A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
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The certification required by Standards Rule 2-3 must be signed by:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
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