Property Valuation
An appraisal using the 'income approach' that produces a value of $1,200,000 while the sales comparison approach indicates $1,050,000 for the same property. The appraiser would likely give more weight to:
AAlways the income approach since it is most sophisticated
BThe approach most appropriate for the property type and quality of data — for an investment property, income approach may be primary✓ Correct
CThe higher value to protect the client
DThe lower value to protect the lender
Explanation
Reconciliation requires the appraiser to weight each approach based on its applicability and data quality for the subject. For income-producing properties, the income approach often receives primary weight.
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