Reconciliation

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?

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?

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?

An appraiser gives the cost approach little weight on a sixty-year-old house. What is the most defensible reason?

A reconciliation section that merely restates the three indications and announces the final value:

An appraiser is reconciling three value indications: Sales Comparison $485,000, Cost Approach $510,000, Income Approach $475,000. The property is a 15-year-old single-family residence in an active market. Which approach should typically receive the most weight?

In reconciling within a single approach, the appraiser considers:

Three approaches indicate $492,000 (sales comparison), $538,000 (cost) and $455,000 (income) for an owner-occupied suburban home. Reconciliation should:

In a narrative appraisal report, which section typically contains the appraiser's final reconciliation of value approaches?

The three approaches indicate $412,000 by sales comparison, $438,000 by cost and $401,000 by income. The appraiser weights them 60%, 15% and 25% respectively. What value is indicated?

Three approaches indicate $401,000, $412,000 and $438,000. What is the median indication?

The approaches indicate $398,000, $412,000 and $438,000. What is the range of the indications?

Sales comparison indicates $286,000 and is given 75% weight; the cost approach indicates $304,000 and is given 25%. What value is indicated?

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?

Four indications come in at $412,000, $418,000, $421,000 and $509,000. The appraiser determines the fourth rests on a sale that was not arm’s length and discards it. What is the mean of the rest?

Sales comparison indicates $340,000 and the cost approach indicates $392,000. By what percentage do they diverge, measured against the lower indication?

The indications run from $296,000 to $334,000. Expressed against the low indication, what is the spread?

Three indications come in at $355,000, $362,000 and $358,000, weighted 50%, 20% and 30% in that order. What value is indicated?

Site value is indicated at $118,000 by sales comparison drawn from six sales, $109,000 by extraction from two sales, and $124,000 by allocation using a market ratio. Which indication deserves the most weight?

When reconciling value indications from the three approaches to value, an appraiser should:

The weighting produces $413,150. How should the final opinion of value be expressed?

A single-family house in a neighborhood of owner-occupants has been analyzed by all three approaches. How should the income approach indication be weighted?

Only the sales comparison approach could be credibly developed, and it indicates $265,000. What does reconciliation involve in this assignment?

What does it mean to say an approach is not applicable to an assignment?

How should an appraiser treat a comparable requiring a 45 percent gross adjustment when others need under 10 percent?

An appraiser is valuing a property where the cost approach indicates $520,000, the sales comparison approach indicates $485,000, and the income approach indicates $510,000. Given that this is an owner-occupied single-family residence in an active market with good comparable sales, which approach should receive the most weight?

The reconciliation process in an appraisal involves:

Why does the income approach normally carry most weight for an apartment building?

An appraiser writes that the approaches were given equal weight because each was fully developed. What is wrong with this reasoning?

Which factor bears most directly on the weight an approach should receive?

Why is the final value opinion normally rounded?

An appraiser writes only that the sales comparison approach was given most weight. What is missing?

An appraiser develops all three approaches on a new suburban house. Which normally receives the greatest weight?

Two approaches diverge widely and the appraiser cannot determine why. What is the appropriate course?

How should an appraiser reconcile indications when the market is unusually volatile?

An appraiser reconciles three site value indications derived by different methods. What is this called?

How should an appraiser handle an approach that produced an indication far outside the others and cannot be explained?

An appraiser writes that all three approaches were 'given equal consideration' and averages them. The methodological problem is:

In reconciling the sales comparison approach, an appraiser has five adjusted indications. What matters most in weighing them?

For a special-purpose property such as a rural church with no comparable sales, reconciliation will typically:

Two appraisers reach different value opinions on the same property with the same effective date. What does this show?

When reconciling value indications from the three approaches, an appraiser should:

An appraiser is reconciling three value indications: Sales Comparison Approach = $485,000, Cost Approach = $510,000, Income Approach = $475,000. For a single-family residence, which approach should typically receive the greatest weight?

In reconciling, what does the appropriateness of an approach refer to?

Which statement best describes the reconciliation process in appraisal?

Which statement about averaging the three approaches is correct?