While reconciling the values indicated from the three approaches during the appraisal process, which factor will the appraiser consider?

During the appraisal process, especially when reconciling values derived from the cost, income, and sales comparison approaches, the relevancy of each method to the specific property being appraised is critical. The appraiser must evaluate which approach provides the most applicable and credible indication of value based on the property's characteristics, the market conditions, and the type of property. Certain properties may lend themselves more naturally to one approach over the others; for instance, an income-producing property may be best assessed using the income approach, while a residential home might be more suitable for the sales comparison approach.

This focus on relevance helps ensure that the appraiser makes a well-informed judgment about which indicated value should carry more weight in the final determination. The decision is made based on a thorough understanding of the context surrounding the property, including its usage, market trends, and the availability of comparable sales. This evaluative process supports the accuracy and reliability of the appraisal, ultimately serving the needs of stakeholders in the real estate transaction.