Which of the following is a limitation of the AEP?

The limitation of the AEP, or Automated Valuation Model, pertains to the range of software options available for appraisers to utilize in their assessments. While it is true that the AEP can effectively analyze large datasets to produce property valuations, the availability of varied software platforms can be limited. This can restrict appraisers in choosing a tool that best fits their unique needs or the specific characteristics of the market they are assessing. A lack of sufficient software options can also impact the integration of the AEP with existing systems or hinder the ability to customize the models effectively for particular property types or locational nuances.

The other options do not accurately reflect limitations of the AEP. For example, the assertion that it "always produces reliable values" is misleading since, while the AEP strives for accuracy, no model is infallible and values can vary based on data quality and model design. Requiring an exact number of sales to function is also not a necessity of all automated models, as they can often derive valuations from varying sample sizes. The notion that it "improves accuracy through automated processes" speaks to a potential strength of the AEP rather than a limitation, highlighting how automation can enhance efficiency and precision in property valuation.