Property Valuation
A North Dakota apartment building's value by the income approach is $1,200,000 and by the sales comparison approach is $1,150,000. The appraiser should reconcile these figures by:
AAlways averaging the two numbers
BWeighing the reliability and quality of each approach based on available data and the property type✓ Correct
CUsing the highest value to benefit the client
DUsing the lowest value for conservative purposes
Explanation
Reconciliation involves the appraiser analyzing the quality and reliability of each approach's data and applicability to the property type. For income-producing apartments, the income approach may receive more weight; for single-family homes, the sales comparison approach typically dominates.
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