Property Valuation
When reconciling the three approaches to value in an appraisal, the appraiser should:
AAlways average the three indicated values equally
BSelect only the highest indicated value to protect the client
CGive greatest weight to the approach most applicable and reliable given the property type and data quality✓ Correct
DEliminate the approach producing the highest value to be conservative
Explanation
Reconciliation is not a mathematical average. The appraiser weighs the reliability and applicability of each approach based on property type, market conditions, and data quality, arriving at a final value opinion that best reflects market value.
Related California Property Valuation Questions
- The 'effective age' of a building used in appraisal is best defined as:
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- Which appraisal approach is most commonly used for single-family homes?
- A Comparative Market Analysis (CMA) prepared by a real estate agent is:
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