What is the process by which appraisal data is finalized into a value estimate?

The process by which appraisal data is finalized into a value estimate is known as reconciliation. In the context of real estate appraisal, reconciliation is the method where the appraiser synthesizes the findings from various valuation approaches—typically the cost approach, sales comparison approach, and income approach—into a single, cohesive value estimate. This involves reviewing and weighing the results obtained from each method, considering factors such as market conditions, property characteristics, and data quality.

Reconciliation ensures that the final value estimate reflects a comprehensive understanding of the property's worth, balancing the insights gained from different methodologies to arrive at a value that is both informed and credible. Ultimately, it is a critical step that helps appraisers provide a clear, reliable value opinion to their clients.

In contrast, other processes like analysis and verification serve different functions within appraisal practice. Analysis refers to the examination of data and trends, while verification involves checking the accuracy of data sources. Assessment generally pertains to the broader evaluation of property for taxation purposes rather than the specific task of determining value in an appraisal context.