What is the purpose of reconciliation in an appraisal report?

Reconciliation in an appraisal report serves the essential purpose of determining a final value estimate by analyzing data gathered from different approaches to value. This process involves reviewing the findings from various valuation methods, such as the cost approach, sales comparison approach, and income approach, to arrive at a single, well-supported value opinion.

During reconciliation, the appraiser critically evaluates the relevance and reliability of the data obtained from these different methods, considering factors such as the quality of the data, market conditions, and the characteristics of the property in question. The goal is to integrate these disparate insights to arrive at a cohesive and defensible final value estimate that reflects the property's Market Value.

The other options, while related to appraisal practices, do not accurately capture the essence of reconciliation. Choosing an appraisal method pertains more to the initial steps of the appraisal process before reconciliation occurs. Updating an appraisal to current market conditions is a separate update process that may happen after the initial appraisal is completed. Communicating with clients about potential issues is part of client relations and appraisal reporting but does not reflect the analytical process central to reconciliation.