Professional Documents
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HANDOUT NO. 57
ICRB CRESAR 2015
Step 5 - Reconciliation of Value Indications - Results from the three approaches are reconciled using a
rational formula averaging or assigning a probability factor for each approach. The logic for the
reconciliation method used must also be clearly explained.
A.
B.
C.
D.
Real Property
Personal Property
Businesses
Financial Interests
Q. The Bishop asked Mr. Appraiser to value a 70-year old dilapidated church. The following approach
is practical and more appropriate
A.
B.
C.
D.
Compare the price of this property with other churches in neighboring towns;
Make an estimate of the cost of restoring the church.
Find out the current income generated from churchgoers in the parish.
Undertake a highest and best use analysis.
Q. Previous problem. Under the principle of consistent use the following must be followed during the
HABU analysis - A. The recommended HABU must assume that the use is still a church ;
B. The recommended value for the land and for the building is based on same use;
C. The HABU can simply be for the land assuming it is vacant;
D. The HABU recommendation must be what the Bishop wants.
Q. A lot at downtown in the city was leased 25 years for use as a parking lot and it earns P500K monthly.
Value shall be based on
A. Comparable sales of other properties used as parking lot;
B. Using income approach, capitalize the earnings for next 25 years;
C. Make a HABU analysis assuming the leasehold can be terminated.
D. It is not adviseable to estimate a value.
Q. In the basic steps in appraisal, Reconciliation means
A. Completing an appraisal assignment on time;
B. Reconciling the Clients value expectation with the appraisers estimate;
C. Selecting the final value from various results obtained during analysis;
D. All of the above.