15 Reconciliation and the Appraisal Report In reconciliation process appraiser considers: 1. Definition of value sought 2. Amount and reliability of data collected in each approach 3. Inherent strengths and weaknesses of each approach 4. Relevance of each approach to subject property and market behavior

Reconciliation is . . . Not a correction of errors in thinking and technique Not merely an averaging of values Not a narrowing of the range of value

Types of Appraisal Reports Appraisal report—sufficient information to lead the client to the appraiser’s conclusion of value Restricted report—made for specific client and stated limited purpose; contains virtually none of the information the appraiser used to arrive at the conclusion of value

Styles of Written Appraisal Reports Form report URAR--Fannie Mae Form 1004/Freddie Mac Form 70 Form 2075 for Desktop Underwriter® Narrative report Introduction Suppositions of the appraisal Presentation of data Data Analyses and Conclusions Supporting material