Analyzing values from different appraisal approaches is called what?

• A. Plottage
• B. Gross Rent Multiplier
• C. Market Price
• D. Reconciliation

Answer: (D)

Reconciliation is the process of analyzing and weighing the results from the different appraisal approaches to arrive at a single final estimate of value. In typical appraisals, the cost approach, sales comparison approach, and income capitalization approach each produce an indicated value, and reconciliation involves considering which methods are most applicable and how reliable each set of data is for this property and market. The appraiser may assign weights to each approach and then combine them to form the final indication of value, resolving discrepancies and reflecting market realities. Plottage refers to adding value by merging neighboring parcels. Gross Rent Multiplier is a simple metric within the income approach, calculated as value divided by gross monthly rent, and it doesn’t describe the process of combining multiple approaches. Market price is the actual transaction price in the market, not the reconciliation of appraisal methods.