Chapter 11

Question 1

A phase of a valuation assignment in which two or more value indications are processed into a value opinion, which may be a range of value, a single point estimate, or a reference to a benchmark value

Answer 1

Reconciliation

Question 2

Once we make the adjustments in the sales comparison approach, and are trying to reconcile to an indicated value, we need to seriously analyze the sales data. We need to address the quantity and the quality of the data.

We should ask ourselves questions such as:

Answer 2

How many comparable sales are there?
How many adjustments are made to each?
What are the gross and net percentages for each comparable?
What is the absolute value of adjustments for each comparable?

Question 3

True or false: We almost never find a perfect comparable

Answer 3

True

Question 4

The criteria that enable an appraiser to form a meaningful, defensible conclusion about the final value opinion. Value indications are tested for the appropriateness of the approaches and adjustments applied, the accuracy of the data, and the quantity of evidence analyzed.

Answer 4

Reconciliation Criteria

Question 5

An appraiser discovers that the indicated values of her comparable sales, after adjustment, have a range of over 20%. What should the appraiser do?
revise the indications so they all come out to the same number
revise the indications so that they have a spread of no more than 10%
average the indications and use that as the final value conclusion
leave the indications as they are and explain it

Answer 5

leave the indications as they are and explain it

Question 6

An appraiser has developed three approaches to value in an appraisal assignment, and is now trying to determine what the final value opinion will be. Which step in the appraisal process is being undertaken here?
Problem identification
Scope of work
Reconciliation
Reconnaissance

Answer 6

reconciliation

Question 7

One of the weaknesses of spell­check is
it only works for one-syllable words
it will not catch misused words
most appraisal reports are not written on computers
most appraisal software programs don’t have spell-check

Answer 7

it will not catch misused words

Question 8

Which of these is the LEAST appropriately rounded final value opinion?
$405,200
$44,500
$103,000
$855,000

Answer 8

$405,200

Question 9

True or False: Reconciliation involves taking the indicated values of the comparable sales and averaging them.

Answer 9

False

Question 10

"A phase of a valuation assignment in which two or more value indications are processed into a value opinion, which may be a range of value, a single point estimate, or a reference to a benchmark value " is the definition of
review
reconciliation
gross rent multiplier
data analysis

Answer 10

reconciliation

Question 11

Which of these final value conclusions is MOST appropriately rounded?
$889,500
$1,211,000
$44,500
$87,545

Answer 11

$44,500

Question 12

When reconciling to a value conclusion, USPAP requires an appraiser to consider:
The quality of the data available

The applicability and relevance of the approaches used
The quantity of the data available
All of these

Answer 12

all of these