Appraisal reasoning step that weighs valuation evidence to reach a supported final value conclusion.
Value reconciliation is the appraisal reasoning step that weighs the valuation evidence and leads to a supported final value conclusion.
Value reconciliation matters because appraisals are not usually solved by a simple average. Several Comparable Sales (Comps) may produce different Adjusted Sale Price indications. The appraiser still has to decide which evidence is most reliable and how it supports the final Appraised Value.
Borrowers often think that if three comps are used, the answer should be the midpoint. Reconciliation is why that may not happen. A more similar, more recent, or better-supported comp may receive more weight than another sale.
Borrowers usually encounter value reconciliation inside the Appraisal Report, especially near the final value conclusion or summary of comparable sales.
The term becomes practical during Appraisal Review or Reconsideration of Value because a reviewer may ask whether the report’s final value is consistent with the evidence presented.
| Evidence question | Why it matters |
|---|---|
| Which comps are most similar? | Stronger similarity may support greater weight |
| Which sales are most recent? | Recent sales may need less market-change interpretation |
| Which adjustments are largest? | Heavy adjustments can make a comp less persuasive |
| Which approach is most relevant? | Residential files often rely heavily on the sales comparison approach |
Value reconciliation should connect the evidence to the conclusion in a way the lender can review and the borrower can understand.
Three adjusted sale prices indicate $392,000, $400,000, and $414,000. The appraiser does not simply average them. If the $400,000 comp is most similar in size, condition, location, and timing, the final value may reconcile close to that indication.
Value reconciliation differs from Appraisal Adjustment because adjustments change individual comparable-sale indications, while reconciliation weighs the overall evidence.
It differs from Adjusted Sale Price because adjusted sale price is one comp’s value indication, while value reconciliation is the final weighing process.
It also differs from Reconsideration of Value. Reconciliation happens inside the original report; reconsideration is a later request to revisit the conclusion.