Property Valuation
The reconciliation process in an appraisal involves:
AAveraging the three approaches to value
BWeighing the reliability and applicability of each approach to arrive at a final value opinion✓ Correct
CAveraging all comparable sales
DAdding the cost approach to the income approach
Explanation
Reconciliation is the appraiser's analytical process of evaluating the credibility and relevance of each approach (sales comparison, cost, income) and assigning appropriate weight to arrive at a final value conclusion.
Related New Jersey Property Valuation Questions
- In New Jersey, when appraising an income property, a 'vacancy and collection loss' deduction is applied because:
- The principle of substitution states that a buyer will pay no more for a property than:
- A 'going-concern value' appraisal is used for:
- Functional obsolescence in property valuation refers to:
- An appraisal of a NJ waterfront property in Monmouth County would most heavily weight which approach?
- The principle of contribution states that the value of a component part of a property is:
- A gross rent multiplier (GRM) is calculated as:
- An appraisal for a NJ estate (tax purposes) typically uses which standard of value?
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