Property Valuation
A property appraiser must reconcile value indications from multiple approaches. The weight given to each approach should be based on:
AThe average of all three approaches equally
BThe approach(es) most applicable to the property type and the reliability of available data✓ Correct
COnly the sales comparison approach for all property types
DThe client's preference for a higher value
Explanation
In the reconciliation phase, the appraiser weighs the value indications from the applicable approaches based on their reliability and appropriateness for the subject property type. For residential properties, the sales comparison approach usually receives the most weight; for income properties, the income approach; for special-use properties, the cost approach.
Related Texas Property Valuation Questions
- The 'Band of Investment' method in Texas appraisal is used to:
- The 'Appraisal Foundation' sets USPAP (Uniform Standards of Professional Appraisal Practice) standards for appraisers. USPAP is updated:
- In Texas, the relationship between cap rates and property values is:
- The principle of substitution states that:
- The economic principle of conformity in real estate valuation states that:
- Texas ad valorem tax protests must be filed with the county Appraisal Review Board (ARB) by:
- If a commercial property has a net operating income (NOI) of $90,000 and comparable properties are selling at a 6% capitalization rate, the estimated value is:
- The term 'as-is' value in a Texas appraisal means:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →