What does the term 'reconciliation' refer to in the context of property valuation?

In the context of property valuation, 'reconciliation' refers to the process of analyzing and comparing various property value indications derived from different approaches—such as the cost approach, the sales comparison approach, and the income approach. This process helps to arrive at a final estimate of value by weighing and balancing the outcomes from each method.

Reconciliation is essential because it allows the appraiser to determine which value is the most accurate, reliable, and representative of the property in question, considering factors like market conditions and property specifics. It is not simply about reporting the applied value or achieving conformity but involves a critical analysis of the gathered data to ensure that the final value conclusion is substantiated and reflects the property's true market potential.