What is reconciliation in the context of appraisal methods?

Reconciliation in the context of appraisal methods refers to the process of combining value indications from different approaches. In appraisal practice, various methods—such as the cost approach, sales comparison approach, and income approach—can produce differing estimates of a property's value. The reconciliation process involves analyzing these different estimates and determining a final value that appropriately reflects the data and methodology employed.

This process is crucial because it allows the appraiser to weigh the credibility and relevance of each method based on the specific property and market conditions. Through reconciliation, the appraiser synthesizes the results into a well-supported conclusion of value, ensuring that the final appraisal report is comprehensive and justifiable.

Other choices touch on important aspects of the appraisal process, such as documentation and approval, but they do not encapsulate the essential function of reconciliation, which is to integrate multiple value perspectives into a single, coherent value conclusion.