Valuation & AppraisalQuestion 103 of 120
An appraiser reconciling the results of the three approaches to value will:
a.Weigh the approaches based on reliability and the property type to reach a final opinion
b.Simply average the three values together in every case
c.Always use the highest of the three values
d.Discard all approaches and use the asking price
Explanation
Reconciliation is the process of weighing the value indications from the applicable approaches to arrive at a single, supported opinion of value. The appraiser gives more weight to the approach most reliable for the property type, rather than mechanically averaging. Judgment and data quality guide the final conclusion.
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