An appraiser in Sacramento, California is using the sales comparison approach and must reconcile the values from five comparable sales. The adjusted values range from $420,000 to $465,000. Under USPAP and California appraisal practice, how should the appraiser reconcile these values?
Correct Answer
D) Weight the comparables based on their degree of similarity to the subject and the reliability of adjustments made, giving most weight to the most similar comparable
Under USPAP Standards Rule 1-6 and California appraisal practice, reconciliation is NOT a mathematical averaging process. The appraiser must analyze the quality and quantity of data, consider the degree of similarity of each comparable to the subject, and weight the indicators accordingly. The comparable requiring the fewest and smallest adjustments is typically given the most weight because its adjusted value is most reliable.
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