How do appraisers commonly reconcile values from different valuation approaches?

Appraisers commonly reconcile values from different valuation approaches by using a weighted average. This method allows for a more nuanced assessment by assigning different levels of importance to each approach based on its perceived reliability and relevance to the property being valued. For instance, certain valuation methods may be more appropriate depending on the type of property or the availability of data.

By using a weighted average, appraisers can reflect their judgment about the credibility of each valuation method. This means that if one approach is considered more accurate or applicable, it can be given a higher weight in the final reconciliation, leading to a more balanced and justifiable final value conclusion. This approach is particularly advantageous in cases where different methods (such as the income approach, sales comparison approach, and cost approach) might yield varying results yet each offers valuable insight into the property's worth.

Other methods, such as simple averaging or summation, do not account for the differing significance of the various valuation approaches and therefore may not provide as accurate or justified a final value reconciliation.