Property Valuation
What is 'reconciliation' in a Kansas real estate appraisal?
AResolving disputes between buyer and seller
BThe appraiser's final analysis of the value indications from all approaches used to arrive at a single, supportable value conclusion✓ Correct
CCorrecting mathematical errors in the appraisal report
DMatching the appraised value to the contract price
Explanation
Reconciliation is the appraiser's process of analyzing the value indications from the cost, sales comparison, and income approaches, weighing their relative reliability and applicability, to arrive at a final, supported value estimate.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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