Property Valuation
An Oklahoma appraiser reconciles the three approaches to value by:
AAveraging the three values equally
BSelecting only the highest value
CWeighing the approaches based on property type and available data✓ Correct
DUsing only the income approach
Explanation
In the reconciliation step, an appraiser weighs the results of each approach based on the reliability of available data, the property type, and the purpose of the appraisal, not by simply averaging the three values.
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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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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