What does the reconciliation process in appraisals entail?

The reconciliation process in appraisals involves carefully considering the quality and quantity of data. This is a critical step where the appraiser evaluates the information gathered through different valuation approaches, such as the sales comparison, cost, and income approaches.

During reconciliation, the appraiser analyzes how reliable and relevant the data is concerning the subject property. The appraisal profession recognizes that not all data are created equal; thus, the appraiser must discern which data points carry more weight due to their accuracy, comparability, and recency. This nuanced evaluation allows the appraiser to arrive at the most reasonable and supportable value conclusion, ensuring that the final appraisal report is credible and substantiated.

While summarizing values obtained from different approaches, comparing sales, and verifying property accuracy are components of the overall appraisal process, they do not encapsulate the primary focus of the reconciliation phase, which is fundamentally centered on evaluating the data itself.