medium · National Real Estate Exam valuation
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?
- $1,400,000; No, the appraiser must always choose the cost approach for commercial property
- $1,250,000; Yes, averaging is the final step in reconciliation
- $1,100,000; No, the appraiser must always choose the lowest value
- $1,250,000; No, because reconciliation requires weighing, not averaging
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