What should an appraiser do after using different approaches to value?

An appraiser should reconcile the indicated values after using different approaches to value. This process involves assessing the various values derived from the different methods applied—such as the cost approach, sales comparison approach, and income approach—and determining a final value that reflects a well-reasoned opinion based on those results.

Reconciliation is essential because each approach may yield different values due to the varying methodologies and data utilized. By analyzing and weighing these values against one another, the appraiser can identify which approaches are more applicable or credible in context, integrating their findings into a coherent conclusion that represents the most accurate market value of the property.

This step is crucial as it ensures transparency and gives the stakeholders, including clients and lenders, a clear understanding of how the final value was determined. It also helps in addressing any discrepancies and lending credibility to the appraisal report. Depending on the property type and market conditions, the reconciliation process might lead to a value that leans more towards one approach over the others or a weighted average of the different values.

The other options do not adhere to best practices in appraisal. Finalizing the appraisal without explanation would leave stakeholders without a clear understanding of the value conclusion. Presenting all values equally could mislead the reader about the validity of each approach