Property Valuation
An appraiser's final reconciliation of value in a West Virginia appraisal involves:
AAveraging all three approaches to value
BWeighing each approach's reliability given the property type and data quality to arrive at a final value conclusion✓ Correct
CUsing only the highest indicated value
DSelecting the approach preferred by the lender
Explanation
Reconciliation requires the appraiser to analyze the reliability and applicability of each approach for the specific property and assignment, and weight them accordingly to reach a final value estimate — not simply average them.
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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.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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