What is the purpose of the reconciliation process in an appraisal report?

The reconciliation process in an appraisal report serves a crucial role in synthesizing the various value estimates obtained from different appraisal approaches—such as the cost, sales comparison, and income approaches. During reconciliation, the appraiser evaluates these different estimates, considers the strengths and weaknesses of each approach, and weighs the relevance of the data used. This ensures that the final value opinion reflects a well-informed and substantiated conclusion.

The importance of this process lies in its ability to provide clarity and justification for the appraised value, enhancing the credibility of the appraisal. By carefully examining the estimates derived from multiple methodologies and reaching a final value opinion, the appraiser ensures that the report is comprehensive and defensible. This aligns with the overarching goal of appraisals, which is to arrive at a conclusive and justified estimate of a property's market value.