Property ValuationIntermediateDelaware Exam

What does 'reconciliation' mean at the end of a Delaware appraisal?

AChecking the arithmetic in the appraisal report
BThe process of weighing the value indications from different approaches to arrive at a final value opinionCorrect
CAdjusting the appraised value to the lender's target value
DVerifying the comparables with the MLS

Why The process of weighing the value indications from different approaches to arrive at a final value opinion Is Correct

Answer B: The process of weighing the value indications from different approaches to arrive at a final value opinion

Reconciliation is the final step in the appraisal process where the appraiser weighs the value indications from the cost, income, and sales comparison approaches and, based on their relevance and reliability, arrives at a final value opinion.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

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