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Question:
Jonas is a certified residential appraiser. Jonas is hired to conduct an appraisal on a commercial property in an adjacent city. Jonas diligently examines the property and the surrounding area. Over the course of his activities, Jonas arrives at different valuations of the property under the market comparison approach, the cost approach and the income approach. What is Jonas’ next step?
A
Select the value which best relates to the property being appraised from the values arrived at under the three approaches.
explanation
Different values arrived at under the various appraisal approaches requires the appraiser to correlate or reconcile the values. Here, the appraiser selects the most appropriate value based on the property being appraised and its type. For instance, a value arrived at under the income approach would not be used to value residential property that is owner-occupied as it generates no income.
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