What is the purpose of an appraiser's reconciliation process?

The purpose of an appraiser's reconciliation process is to finalize the value estimate from various data sources. During the appraisal process, an appraiser typically analyzes multiple pieces of information, which may include comparable sales, income approaches, and cost estimates. Each method can provide a different perspective on the property's value.

Reconciliation is the stage where the appraiser synthesizes this information and evaluates the strengths and weaknesses of each valuation method used. By doing this, the appraiser arrives at a final value conclusion that reflects a comprehensive analysis of the property and the market conditions. This process is crucial as it ensures the appraiser produces a well-supported and reasoned appraisal report, ultimately aiming for accuracy and reliability in the value estimate provided to clients, lenders, and other stakeholders.

This understanding emphasizes the critical nature of a thorough reconciliation process in achieving a cohesive and justified valuation.