Reconciliation is the final analytical step in the appraisal process in which the appraiser reviews and weighs the value indications produced by each applicable approach to value, arriving at a single, supportable opinion of value for the subject property. It is a reasoned judgment, not a mathematical average.
In practice, reconciliation requires the appraiser to assess the relative reliability and relevance of each approach given the property type, available data and intended use of the appraisal. The sales comparison approach typically carries the most weight in residential valuations, while the income or cost approach may take precedence for investment properties or unique structures.
A well-supported reconciliation demonstrates the appraiser's analytical reasoning and reinforces the credibility of the final value conclusion. Reviewers and underwriters should expect a clear explanation of how and why each approach was weighted — vague or unsupported reconciliation is a common appraisal deficiency.