Discuss Real Estate Licensing NCREC-Broker-N Exam Topic 1 Question 19

[Listing Price and Terms -- Appraisal Process]

Which of the following will an appraiser consider when appraising a property?

AThe cost to update the subject property

BThe original price paid for the property

CThe average value of all available comparables

DA reconciliation of values if more than one appraisal method is used

Suggested Answer: D

When using more than one approach to value (sales comparison, cost, and income), an appraiser must reconcile the results, weighting each method based on its relevance to the subject property. The original purchase price and average of all comps are not directly used in determining value. The cost to update may factor into adjustments but is not a primary valuation method. Therefore, the correct answer is D.

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15 comments · newest first

Kallie 15 days ago

Still, D helps ensure accuracy. Can't ignore that.

Martha 21 days ago

Right, they need to see what similar properties are selling for.

Jeanice 26 days ago

True, but C is more straightforward for appraisers.

Kallie 1 month ago

But D is important too. Multiple methods can give a clearer picture.

Martha 1 month ago

I agree, C makes sense. It's all about market value.

Jeanice 1 month ago

I think C is the best choice. Comparables matter a lot.

Flo 2 months ago

I thought they only focused on current market trends.

Nydia 2 months ago

Reconciliation of values is key if using multiple methods!

Terrilyn 2 months ago

Wait, they care about the original price? That seems odd.

Rutha 2 months ago

Definitely, they consider the cost to update too.

Mariko 2 months ago

Appraisers look at comparables for sure!

Chana 2 months ago

I vaguely recall that if multiple appraisal methods are used, a reconciliation of values is necessary, so D could be a strong choice.

Sheron 3 months ago

I feel like the original price paid for the property could be relevant, but it might not reflect the current market value.

Carole 3 months ago

I remember something about comparables being crucial in appraisals, so I might lean towards option C.

Jerry 3 months ago

I think the appraiser looks at the cost to update the property, but I'm not sure if that's the most important factor.

Real Estate Licensing NCREC-Broker-N Exam - Topic 1 Question 19 Discussion