What does reconciliation refer to in the appraisal process?

Reconciliation in the appraisal process refers to the final step where an appraiser evaluates and weighs different value approaches to arrive at a single, unified conclusion about a property's value. This stage typically follows the application of different valuation methods, such as the cost approach, the sales comparison approach, and the income approach.

During reconciliation, the appraiser considers the strengths and weaknesses of each method, taking into account the relevant data and the context of the property being appraised. This process involves synthesizing the findings from the various approaches to ensure a well-supported final estimate of value that reflects the most accurate representation of the property’s market situation.

The importance of reconciliation lies in its ability to produce a credible and reliable value conclusion that can withstand scrutiny from clients, stakeholders, or during potential disputes. It highlights the appraiser's expertise and judgment in determining the most appropriate value based on a comprehensive analysis of the information available.