Chapter 15. RECONCILING THE VALUE ESTIMATES. CHAPTER TERMS AND CONCEPTS. Rounding the answer Significant digits Technical review Value conclusion Value indication. Consistency Evaluate the approaches Evaluate the data Range of values Reconciliation. LEARNING OUTCOMES.
RECONCILING THE VALUE ESTIMATES
Define the term reconciliation.
Explain why the appraiser must first review each value approach that has been used.
Explain why the appraiser reviews the data used in each approach.
Show how to round the final answer.
1. Review the overall appraisal process.
2. Review for technical accuracy.
The type of property being appraised
The agreed scope of work
The intended user(s) of the appraisal
Precisely located and identified the property
Clearly defined the property rights to be appraised
Pinpointed the date when the value estimate applies
Given a formal definition of the type of value stated
Clearly defined the intended use and user of the appraisal and report
Review of the Appraisal
Reconciling the Value Approaches
Rounding the Answer
The answer to any mathematical step should not be reported with any more significant digits than the smallest number of significant digits occurring in any number used.
After a value indication has been reached for each of the relevant approaches, the appraiser usually must then reduce these separate value indications to a single estimate. This process is called reconciliation.
At the end of this process, a final value conclusion is normally reached. Arriving at a final conclusion involves many considerations. Once your conclusion has been reached, you will then want to consider rounding your answer.