Question

Reconciliation is an appraisal term used to describe:

a. the appraiser's determination of a property's highest value

b. an average of real estate values for properties similar to the subject property

c. the appraiser's analysis and comparison of the results of each appraisal appraoch

d. the method used to determine the most appropriate capitalization rate for property

Answer 1

Reconciliation in appraisal is the process where c) the appraiser analyzes and compares the results of different appraisal approaches to integrate information for a final property value estimation.

Step-by-step explanation:

The term reconciliation in appraisal refers to c. the appraiser's analysis and comparison of the results of each appraisal approach. It involves critically reviewing and assessing the data obtained from the three major appraisal methods: the Cost Approach, the Sales Comparison Approach, and the Income Approach. The appraiser integrates the information to arrive at a final estimated value, ensuring that the value reflects the most accurate assessment of the property's worth, considering the various contributing factors.

This does not indicate determining the highest value, averaging real estate values, or choosing the most appropriate capitalization rate but is the process of synthesizing information to provide a well-supported conclusion.