Property Valuation
In an appraisal, reconciliation is the process of:
AAveraging the three approaches to value
BWeighing the results of different appraisal approaches to arrive at a final value estimate✓ Correct
CAdjusting comparable sales for financing differences
DResolving disputes between the appraiser and lender
Explanation
Reconciliation (or correlation) is the final step in an appraisal where the appraiser analyzes and weighs the results from each valuation approach to arrive at a single, well-supported final value estimate.
People Also Study
Related New Hampshire Questions
- A NH appraiser estimating the value of a new medical office building would most likely use which appraisal approach as primary?Property Valuation
- An appraiser in Concord, NH uses three comparable sales to estimate value. The sales are $310,000, $298,000, and $325,000 after adjustments. The appraiser's final value conclusion will:Property Valuation
- An appraiser preparing a market value estimate for a NH residential property uses market data as of the 'effective date' of the appraisal. The effective date is:Property Valuation
- An appraiser's determination of value is an estimate as of:Property Valuation
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Study This Topic
Practice More New Hampshire Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Hampshire Quiz →