Reconciliation in appraisal involves:

• A. Calculating replacement cost only
• B. Analyzing the results from the three approaches and assigning weights
• C. Determining which approach produced the highest value
• D. Ignoring the approaches entirely

Answer: (B)

Reconciliation in appraisal is the process of blending the results from the three value approaches into one final opinion. Each method—cost, sales comparison, and income—offers a different view of value, and their usefulness varies with property type and market conditions. The appraiser evaluates the reliability and relevance of the data from each approach and assigns weights to reflect how much each should influence the final value. The goal isn’t to pick the highest figure or to rely on a single method; it’s to apply professional judgment to combine the indications into a single, defensible value estimate. For a typical residential property, the sales comparison approach often carries more weight because market evidence is most directly relevant, while the cost approach or income approach might be weighted less depending on the situation. In contrast, for an investment property, the income approach may be weighed more heavily. Reconciliation is the integrative step that produces the final value by considering the strengths and limitations of all methods.