Which statement about reconciliation is true?

Reconciliation is a critical step in the appraisal process, specifically referring to the analysis and synthesis of findings from different approaches to value that have been applied in the appraisal. After conducting a comprehensive appraisal, the appraiser will have obtained value estimates from various methods, such as the cost approach, sales comparison approach, and income approach. The purpose of reconciliation is to evaluate these conclusions and consider their relative strengths and weaknesses in the context of the subject property.

Through reconciliation, the appraiser determines the most credible value indication based on the collected data and professional judgment. This ensures that the final appraised value reflects a well-considered consensus rather than simply an average or arbitrary figure. Thus, understanding reconciliation as a method of weighing findings and coming to a supported conclusion highlights its significance in producing accurate and defensible appraisals.

Other options do not accurately reflect the definition or process of reconciliation—it is not the starting point in the appraisal process, does not imply averaging the suggested values, nor does it arise from disagreements among multiple appraisers.