Property Valuation
What is 'value reconciliation' in the context of a Hawaii appraisal using multiple approaches?
AA. Averaging the results from the three approaches to value
BB. The appraiser's professional judgment in weighing the reliability and relevance of each approach's indication to arrive at a final value opinion, explaining which approach is most reliable and why✓ Correct
CC. Reconciling the appraised value with the contract price when they differ
DD. A mathematical process that always favors the highest indicated value
Explanation
Reconciliation is the appraiser's final step—professionally weighing the value indications from the sales comparison, cost, and income approaches based on their reliability and applicability to the subject property. For a typical Hawaii single-family home, the sales comparison approach is weighted most heavily. For an income-producing apartment building, the income approach gets more weight. The appraiser explains their reasoning.
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