Property ValuationIntermediateDelaware Exam

A property appraised using the sales comparison approach has three comparables. The appraiser adjusts each comparable. The final step is to:

AAverage the three adjusted values
BReconcile the adjusted values using professional judgment to arrive at a value estimateCorrect
CUse only the highest adjusted value
DUse only the comparable that required the fewest adjustments

Why Reconcile the adjusted values using professional judgment to arrive at a value estimate Is Correct

Answer B: Reconcile the adjusted values using professional judgment to arrive at a value estimate

After adjusting comparables, the appraiser reconciles the range of values using professional judgment, giving more weight to sales that required fewer and smaller adjustments.

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.

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