An appraiser reconciles three comparables with Sale 1 at 225,000 and superior to the subject, Sale 2 at 208,000 and inferior, Sale 3 at 215,000 and inferior, reconciling at 220,000. This is an example of _________ analysis.

• A. Quantitative
• B. Statistical
• C. Qualitative
• D. Empirical

Answer: (C)

The main idea is that final value in the Sales Comparison Approach can come from the appraiser’s judgment about how much each comparable should influence the subject’s value, based on differences in quality and similarity rather than from a strict formula. In this example, the appraiser weighs the three sales by their relative superiority or inferiority to the subject and arrives at 220,000 through qualitative assessment of which comps are more credible and relevant. There isn’t an explicit mathematical weighting or statistical model shown; the final figure reflects professional judgment about the impact of each sale, which is why this is qualitative analysis. If a precise weighted average or a statistical method were used to derive the reconciled value, it would be quantitative or statistical instead.