Certified Pennsylvania Evaluator Practice Exam

What is typically the last step in an appraisal process?

1. Inspection

2. Reconciliation

3. Report Writing

4. Data Collection

The correct answer is: Reconciliation

The last step in an appraisal process is reconciliation. This step involves analyzing and synthesizing the various value estimates derived from different approaches used during the appraisal, such as the cost, sales comparison, and income approaches. The appraiser will weigh the reliability of the estimates based on the data and circumstances, and then arrive at a final opinion of value. Reconciliation is vital because it ensures that the appraiser considers all relevant information and methodologies, allowing for a more accurate and substantiated final valuation. This comprehensive conclusion reflects the most credible and relevant data gathered throughout the appraisal process and aids in presenting a coherent and reasoned basis for the final value figure. In contrast, the other steps, such as inspection, report writing, and data collection, each serve critical functions earlier in the appraisal process. Inspection involves physically examining the property to assess its condition and features. Data collection focuses on gathering all necessary information and comparable sales or market data, and report writing compiles and presents the findings but occurs after reconciliation. Thus, reconciliation stands as the culminating step that finalizes the appraisal's value judgment.