hard · National Real Estate Exam

An appraiser is reconciling three indications of value for an office building: Sales Comparison: $1,250,000; Cost:1,400,000; Income: $1,100,000.

If the appraiser averages the three, what is the result, and is this the correct procedure?

  1. $1,400,000; No, the appraiser must always choose the cost approach for commercial property
  2. $1,250,000; Yes, averaging is the final step in reconciliation
  3. $1,100,000; No, the appraiser must always choose the lowest value
  4. $1,250,000; No, because reconciliation requires weighing, not averaging

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