What Is Reconciliation?
Reconciliation is the final step of the appraisal process, where the appraiser weighs the value indications from the cost, sales comparison, and income approaches — giving more weight to whichever is most reliable for that property type — to arrive at a single opinion of value.
Why it matters
The three approaches rarely produce identical numbers, so reconciliation is a judgment call, not an average — an appraiser might rely almost entirely on the sales comparison approach for a typical home and mostly on the income approach for an apartment building.
More Commercial & Appraisal Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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