Property Valuation
When a Colorado appraiser 'reconciles' value indications from multiple appraisal approaches, this means:
AAveraging all three approaches equally
BWeighting and analyzing each approach to arrive at a final value opinion✓ Correct
CSelecting the highest value indication
DSelecting the lowest value indication to be conservative
Explanation
Reconciliation is the process where the appraiser weighs the significance and reliability of each appraisal approach given the property type and available data, then arrives at a final value opinion rather than simply averaging the results.
Related Colorado Property Valuation Questions
- A Colorado appraiser's 'reconciliation' note states that 'greatest weight was given to the sales comparison approach.' This is because:
- The sales comparison approach to value is most commonly used for:
- An appraiser adds $10,000 to a comparable's sale price to account for a swimming pool that the subject property has but the comparable lacks. This adjustment is:
- An appraiser uses the cost approach to value a Colorado commercial property. The replacement cost new is $800,000 and the property has 25% depreciation. The land is worth $150,000. What is the indicated value?
- The income capitalization approach to value is most commonly applied to:
- An appraiser is asked to estimate the value of an income property using a 10-year discounted cash flow analysis. This method is also called:
- In the cost approach, 'accrued depreciation' is the total loss in value from:
- The 'Uniform Standards of Professional Appraisal Practice' (USPAP) is published by:
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