An appraiser makes a valuation decision based on the appraiser's own perceptions of the market. What term best describes this decision?

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Prepare for the Mckissock 8-hour National Valuation Bias and Fair Housing Laws and Regulations Test. Study with flashcards and multiple choice questions with detailed explanations. Ensure your success on exam day!

Multiple Choice

An appraiser makes a valuation decision based on the appraiser's own perceptions of the market. What term best describes this decision?

Explanation:
Subjective describes a valuation decision that comes from the appraiser's own perceptions of the market rather than from verifiable data. If the decision were based on observable market facts and data, it would be objective; empirical implies conclusions drawn from observed evidence, and quantitative involves numerical measurements. Because this scenario centers on personal judgment of market conditions, subjectivity is the best descriptor. To maintain credibility, appraisers should support any subjective judgments with data and documented rationale.

Subjective describes a valuation decision that comes from the appraiser's own perceptions of the market rather than from verifiable data. If the decision were based on observable market facts and data, it would be objective; empirical implies conclusions drawn from observed evidence, and quantitative involves numerical measurements. Because this scenario centers on personal judgment of market conditions, subjectivity is the best descriptor. To maintain credibility, appraisers should support any subjective judgments with data and documented rationale.

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