Property Valuation
A Kentucky appraiser values a property at $285,000 using the sales comparison approach and $265,000 using the cost approach. When reconciling, the appraiser should:
AAverage the two values and report $275,000
BUse the highest value to protect the property owner
CUse the lowest value to protect the lender
DAnalyze data quality and weight each approach appropriately to arrive at a final value✓ Correct
Explanation
Reconciliation is not mechanical averaging. The appraiser must analyze the quality of data supporting each approach and the appropriateness of each approach for the property type. For most residential properties, the sales comparison approach would receive the most weight.
Related Kentucky Property Valuation Questions
- A Kentucky appraiser is performing a retrospective appraisal to determine value as of a past date for an estate. The appraiser must use data that was available:
- An appraisal is an estimate of a property's:
- In the cost approach, what is the formula for estimating value?
- A Kentucky appraiser discovers that a comparable sale was a distressed (foreclosure) sale. The appraiser should:
- In the sales comparison approach, the appraiser makes adjustments to the comparable sales to account for:
- An appraiser in Louisville uses three comparable sales. After adjustments, the values are $285,000, $290,000, and $287,500. The appraiser assigns the most weight to the $290,000 comparable because it is most similar. The indicated value is:
- In Kentucky, the PVA reassesses property values:
- Economic obsolescence in property valuation refers to a loss in value caused by:
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