Property ValuationIntermediateAlaska Exam

In Alaska, 'reconciliation' in the appraisal process means the appraiser:

AAdjusts the value to match the client's expectations
BReviews and weighs the evidence from all approaches to arrive at a final value conclusionCorrect
CReconciles their report with the lender's required value, as is typical in most transactions
DAverages the three approach values

Why Reviews and weighs the evidence from all approaches to arrive at a final value conclusion Is Correct

Answer B: Reviews and weighs the evidence from all approaches to arrive at a final value conclusion

Reconciliation is the appraisal process of reviewing and weighing the indications of value from all approaches used (sales comparison, cost, and income) and the quality of evidence supporting each to arrive at a final, well-supported value conclusion. It is a judgment process, not a mathematical average.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

Key Property Valuation Terms in This Question

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