Real Estate Council of Alberta Fundamentals Practice Exam

During the appraisal process, which step follows writing the appraisal report?

1. Collecting the necessary documentation

2. Reconcile the final property value estimate

3. Deciding on the approach to valuation

4. Completing a preliminary inspection

The correct answer is: Reconcile the final property value estimate

The step that follows writing the appraisal report is to reconcile the final property value estimate. This is a crucial part of the appraisal process where the appraiser reviews and integrates the different valuation interpretations made throughout the appraisal based on various methods. This step ensures that all relevant data is accurately synthesized to arrive at a coherent and defensible final value for the property. Reconciling the final property value involves assessing the credibility and reliability of the values derived from the different approaches used, such as the cost approach, sales comparison approach, and income approach. The appraiser reconciles these values to determine a final value estimate that reflects the highest and best use of the property. Other options refer to earlier stages in the appraisal process. Collecting documentation involves gathering data necessary for the appraisal, deciding on the approach to valuation is done before the report is written, and completing a preliminary inspection is typically conducted at the outset of the appraisal process. Therefore, these steps do not follow the writing of the appraisal report.