Property Valuation

In Alaska, when two appraisers value the same property and reach different conclusions, the most likely explanation is:

AOne appraiser is corrupt and should be reported
BAppraisal is not an exact science — different appraisers may make different but supportable judgments in their analysis✓ Correct
COnly one appraisal can be correct
DThe higher value is always the correct one

Explanation

Appraisal involves professional judgment in selecting and adjusting comparables, selecting comparable transactions, and reconciling value indicators. Different qualified appraisers may reasonably reach different (but equally defensible) conclusions about the same property, particularly in thin or volatile markets.

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