What is the primary purpose of reconciliation in the appraisal process?

In the appraisal process, reconciliation serves as a crucial step where an appraiser reviews and synthesizes the information obtained from various approaches to value, such as the Sales Comparison Approach, Cost Approach, and Income Approach. The primary purpose of reconciliation is to analyze and weigh the findings from these different methods, considering the strengths and weaknesses of each and how they relate to the specific property being appraised.

By evaluating the data and insights gathered from each approach, the appraiser can arrive at a well-supported final opinion of value that reflects the most credible estimate. This involves considering factors like the context of the property, current market conditions, and the reliability of the data used in each approach. Reconciliation allows the appraiser to provide a balanced view rather than relying solely on a single method, which may not fully capture the property's value.

In this context, averaging all comparable property values, finding the lowest comparable property value, or solely determining the highest possible appraisal value would not accurately represent the nuanced analysis that reconciliation requires. Each of those alternatives lacks the comprehensive consideration that reconciliation strives to achieve in reaching a final appraisal value.