Reconciliation Flashcards
1 of 17Appraiser Sara is in a rush. She has five assignments to finish tonight to appease her clients. Under the gun, she decides to rush through her approaches to value, with the thought she will catch any errors as she performs the final reconciliation for each assignment. Is this the proper use of the final reconciliation process?
No. Errors should be caught in each approach as they are made.
2 of 17In the sales comparison approach, after the best comparable sales have been selected and each one is adjusted to give an indicated value of the appraised property, the indications must then be
reconciled.
3 of 17In reporting the final value estimate, a range of value
indicates the high end and the low end of the subject’s value.
4 of 17George is appraising a unique house. There have been no comparable sales like the subject property in the town where the subject is locate George has not found any rentals of structures like the subject property. Therefore, George will rely entirely on a very detailed cost approach. Two methods will be used to render opinions of site value, three methods will be used to estimate replacement cost, and two methods will be used to estimate depreciation. Since the cost approach is the only approach being used, will there be reconciliations used in this assignment?
Yes, reconciliations can occur throughout the valuation process.
5 of 17In the appraisal process, which of the following statements best describes the method of reconciling the approaches to value?
Weigh the results of the three approaches and choose a final estimate that reflects their relative reliability.
6 of 17Which of the following statements is correct regarding reconciliation?
Reconciliation requires the appraiser to consider the quantity and quality of data available, and the applicability of each approach to value.
7 of 17Why does the appraiser have to reconcile the approaches to value results in an appraisal?
Because several approaches to value usually produces somewhat different results
8 of 17When numeric measurements are not appropriate, which of the following would be suitable alternatives?
qualitative measurements
9 of 17The first step in the valuation process is Problem Identification. The last step in the valuation process is
Reconciliation
10 of 17Reconciliation
11 of 17According to USPAP’s Standards Rule 1-6, requirements for an appraisal’s proper reconciliation are
quality of data and relevance of methods used to derive value.
12 of 17Which of the following factors does an appraiser rely on most when deciding which approach(es) should be given the most weight during the reconciliation step of the appraisal process?
The time it took to finish the assignment and the quantity of data available
13 of 17Which of the following is correct regarding the reconciliation process in an appraisal?
The appraiser should consider both the quality and quantity of data used in the appraisal
14 of 17The quality and accuracy of an appraisal’s reconciliation is a function of
the appraiser’s judgment and proper application of valuation techniques.
15 of 17An appraiser is trying to estimate the value of a property. What process does he use to select which data and approaches are most appropriate?
Reconciliation
