When estimating property value, what is the aim of the reconciliation process?

The reconciliation process in estimating property value aims to finalize the value derived from multiple approaches. This process involves comparing and contrasting different valuation methods such as the cost approach, income approach, and sales comparison approach. Each method may yield a different estimated value, reflecting various aspects of the property and market conditions.

By engaging in reconciliation, the appraiser synthesizes the values obtained from these distinct approaches to arrive at a single, credible estimate of value. This final value is necessary for decision-making in real estate transactions, ensuring that the valuation reflects a comprehensive view based on diverse methodologies.

The focus of reconciliation on integrating various estimates not only assures a more accurate valuation but also increases the reliability of the appraiser's conclusion, which is especially important in a competitive market.