In a sales comparison scenario, three comparables are analyzed with varying quality and the reconciled value is $220,000. This process illustrates which type of analysis?

• A. Quantitative
• B. Qualitative
• C. Economic analysis
• D. Net present value

Answer: (B)

We’re looking at how an appraiser combines multiple sale indications when the comparables aren’t identical. When the comps differ in quality, the reconciliation relies on qualitative judgment about how those non-numeric factors affect credibility and relevance. The appraiser weighs each indication not just by the raw numbers but by how strong and reliable each comp is given quality, condition, location, and other subjective factors. The resulting reconciled value of $220,000 reflects that expert judgment rather than a pure mathematical calculation. If it were purely numeric, we’d be doing a quantitative analysis; if it were about cash flows and time value, we’d be in net present value territory; and economic analysis is broader than the specific task of reconciling sale comparables.