What Is Reconciliation?
Reconciliation is the final step of the appraisal process, where the appraiser weighs the value indications from the cost, sales comparison, and income approaches — giving more weight to whichever is most reliable for that property type — to arrive at a single opinion of value.
Why It Matters
The three approaches rarely produce identical numbers, so reconciliation is a judgment call, not an average — an appraiser might rely almost entirely on the sales comparison approach for a typical home and mostly on the income approach for an apartment building.