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Valuation and Analysis, 14% of the examination

Reconciliation

The appraiser's reasoned weighting of applicable value indications into a final opinion of value.

Reconciliation is not a mechanical average. The appraiser evaluates the quality, quantity, relevance, and reliability of the evidence behind each approach, then gives the greatest weight to the indication that best fits the property and assignment.

See also

Sales comparison approachA valuation method comparing the subject with recent similar sales and adjusting the comparables for material differences.Cost approachA valuation method adding land value to replacement or reproduction cost new, less accrued depreciation.Income capitalization approachA valuation method converting a property's expected income benefits into an indication of value.

Test the distinction

A relevant question from Valuation and Analysis, selected because its facts or explanation use this concept.

Valuation and Analysis ยท 14%Methods of Estimating Value

In appraisal, what is the reconciliation step?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

Property Valuation and Financial AnalysisAll three official DRE valuation topics in one practical guide: value principles, the sales comparison, cost and income approaches, and the financial analysis that turns property data into a defensible answer.14%Practice Valuation and Analysis28 questions on this area, every option explained.Practice

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