What is the primary purpose of reconciliation in appraisal?

The primary purpose of reconciliation in appraisal is to derive a final value opinion considering all the data available. During the appraisal process, an appraiser typically collects various types of data and may employ multiple approaches to value (such as the cost approach, sales comparison approach, and income approach). Reconciliation involves analyzing and synthesizing this information to arrive at a well-supported, singular value conclusion.

This process is critical because it allows the appraiser to weigh the strengths and weaknesses of each method used, ensuring the final opinion of value reflects a comprehensive understanding of the property and the market conditions. Through reconciliation, the appraiser organizes and evaluates the data, resolving any discrepancies or variances encountered during the analysis, ultimately leading to a value that is not just a number, but a well-reasoned conclusion informed by all relevant evidence. This careful consideration is paramount to producing a credible and reliable appraisal report.