Property ValuationIntermediateArizona Exam

A 'reconciliation' in a final appraisal report involves the appraiser:

ACalculating a simple mathematical average of the three approach values to arrive at a final estimate
BWeighting and reconciling the results of each approach based on the property type, available data, and purpose of the appraisalCorrect
CVerifying that all arithmetic and adjustments in the report are free of calculation errors before signing
DConfirming the contract sale price with buyer and seller to ensure the appraised value aligns with their agreement

Why Weighting and reconciling the results of each approach based on the property type, available data, and purpose of the appraisal Is Correct

Answer B: Weighting and reconciling the results of each approach based on the property type, available data, and purpose of the appraisal

Reconciliation is the appraiser's professional judgment process of weighting the indications of value from each approach, giving more weight to those most appropriate for the property type and best supported by data.

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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