In regard to appraisal, what does the term ‘Reconciliation’ refer to?

The term "Reconciliation" in appraisal refers to the process of determining the final estimated value of a property after considering various valuation methods and data sources. During reconciliation, the appraiser reviews and weighs the results obtained from the different approaches to valuation, such as the cost approach, sales comparison approach, and income approach. This step is essential as it allows the appraiser to arrive at a well-supported and reasoned conclusion about the property's value.

In this process, the appraiser assesses the strengths and weaknesses of the approaches used, taking into account the context of the property being appraised, market conditions, and any unique characteristics that may affect value. The appraiser aims for a final value estimate that is credible and reflects a comprehensive understanding of the property and its market position. This is crucial for ensuring accuracy and reliability in the appraisal report, which stakeholders will rely on for making informed decisions.