Property Valuation
Which of the following statements about appraisal reconciliation is TRUE?
AReconciliation always results in the average of the three approach values
BThe appraiser weights the most reliable approach most heavily to arrive at a final value✓ Correct
CThe income approach always takes precedence in residential appraisals
DReconciliation eliminates the need for comparables
Explanation
In reconciliation, the appraiser does not average the three approach values but instead weights each approach based on its reliability and applicability for the specific property and assignment. For most residential properties, the sales comparison approach receives the most weight.
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