Reconciliation Key Terms – McKissock
Questions and Answers 100% Solved
What is the first step in the valuation process? identify the problem
In other words, what are we doing, and who are we doing it for? There are many sub-steps in that
first step.
What is the last step in the valuation process? Reconciliation, the step wherein the value
conclusion is reached. The final step in the process overall is to communicate assignment results
to the client.
a time for contemplation on the various approaches used, and how they stem from the scope of
work. Not a time for catching errors that were made haphazardly, and only caught right before
the client sees the appraisal.
Appraiser 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.
, According 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.
Is the only time to preform a reconciliation at the very end of the appraisal? No,
reconciliations can be performed throughout the valuation process
When reconciling the approaches to value, an appraiser should weigh the results of the
three approaches and choose a final estimate that reflects their relative reliability.
In reporting the final value estimate, a range of value a range of value indicates the high
end and the low end of the subject's value. It is not always necessary for an appraiser to reconcile
to a single-point value.
A probability range is used in reporting the final value estimate to reveal the appraiser's
confidence level in the point estimate.
An 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
Questions and Answers 100% Solved
What is the first step in the valuation process? identify the problem
In other words, what are we doing, and who are we doing it for? There are many sub-steps in that
first step.
What is the last step in the valuation process? Reconciliation, the step wherein the value
conclusion is reached. The final step in the process overall is to communicate assignment results
to the client.
a time for contemplation on the various approaches used, and how they stem from the scope of
work. Not a time for catching errors that were made haphazardly, and only caught right before
the client sees the appraisal.
Appraiser 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.
, According 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.
Is the only time to preform a reconciliation at the very end of the appraisal? No,
reconciliations can be performed throughout the valuation process
When reconciling the approaches to value, an appraiser should weigh the results of the
three approaches and choose a final estimate that reflects their relative reliability.
In reporting the final value estimate, a range of value a range of value indicates the high
end and the low end of the subject's value. It is not always necessary for an appraiser to reconcile
to a single-point value.
A probability range is used in reporting the final value estimate to reveal the appraiser's
confidence level in the point estimate.
An 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
