Section 26

Reconciliation

Appendix F-1, page 326

The Reconciliation section includes information about the different approaches to value, market value conditions, the final opinion of market value, reporting of client requested conditions (if any), and an overall reconciliation of value.

This section also contains a summary of all identified defects, damages, and deficiencies, and provides space for additional commentary and exhibits.

Approaches to Value#

Reconciliation: Approaches to Value

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.000	Sales Comparison Approach Indicated Value	Displays when Sales Comparison Approach Developed by Appraiser is Yes	Dollar amount	If applicable. Indicated Value by Sales Comparison Approach (22.15.15) populates from the Sales Comparison Approach section.
26.001	Sales Comparison Approach Reason for Exclusion	Required when Sales Comparison Approach Developed by Appraiser is No	Other (Describe)	For the Sales Comparison Approach, enter Other and the reason the Sales Comparison Approach was not developed for this appraisal. Notes: - For further commentary, use Reconciliation of Market Value (26.019). - If the Sales Comparison Approach was not developed, reference published guidelines by the GSEs, government agencies, or other identified secondary market participants for specific guidance.
26.002	Income Approach Indicated Value	Displays when Income Approach Developed by Appraiser is Yes	Dollar amount	If applicable, Indicated Value by Income Approach (24.024) populates from the Income Approach section.
26.003	Income Approach Reason for Exclusion	Required when Income Approach Developed by Appraiser is No	Choose one or more allowable answers from the Definition / Additional Guidance column	The reason the Income Approach was not developed for this appraisal. - Insufficient Data - Not Necessary for Credible Results - Other (Describe) Note: For further commentary, use Reconciliation of Market Value (26.019).
26.004	Cost Approach Indicated Value	Displays when Cost Approach Developed by Appraiser is Yes	Dollar amount	If applicable, Indicated Value by Cost Approach (25.000) populates from the Cost Approach section.
26.005	Cost Approach Reason for Exclusion	Required when Cost Approach Developed by Appraiser is No	Choose one or more allowable answers from the Definition / Additional Guidance column	The reason the Cost Approach was not developed for this appraisal. - Difficulty Estimating Depreciation - Lack of Land Sales - Not Necessary for Credible Results - Other (Describe) Note: For further commentary, use Reconciliation of Market Value (26.019).

Appraisal Summary#

Contract Price and Opinion of Market Value#

Reconciliation: Appraisal Summary - Contract Price and Opinion of Market Value

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.006	Contract Price	Displays when Sales Contract Information Analyzed is Yes	Dollar amount	If applicable, Contract Price (20.005) redisplays from the Sales Contract section.
26.007	Opinion of Market Value	Always required	Dollar amount	Market value as defined in the report.

Cooperatives#

Reconciliation: Appraisal Summary - Cooperatives

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.074	(Cooperative Interest)	Displays next to Opinion of Market Value when the property is in a cooperative or condop	N/A
26.008	Pro Rata Share Calculation Method	Required for cooperatives or condops with Project Blanket Financing that includes one or more lines of credit	Drawn or Maximum	Indicates which pro rata share line of credit amount was used in determining the Opinion of Market Value when one or more blanket financing liens is a line of credit: - Drawn: Pro Rata Share of Balance Attributable to Unit (Drawn) was used in 18.036-18.045-18.054-18.063 - Maximum: Pro Rata Share of Balance Attributable to Unit (Maximum) was used in 18.036-18.045-18.054-18.063 For more information, reference the Project Blanket Financing subsection of the Project Information section Reference published guidelines by the GSEs, government agencies, or other identified secondary marketing participants for specific guidance.
26.075	N/A	Displays when the property is in a cooperative or condop	N/A	The market value represents the cooperative interest. The cooperative interest is the equity portion that is over and above the pro rata share of the blanket mortgage(s).

Market Value Condition and Final Value Condition Statement#

Reconciliation: Market Value Condition and Final Value Condition Statement

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.009	Market Value Condition	Always required	Choose one or more allowable answers from table (Market Value Condition)	- As Is - Subject to Completion Per Plans - Subject to Inspection - Subject to Repair Notes: - If Market Value Condition is As Is, no other conditions can be applied. - If Recommended Action is Completion, Inspection, or Repair in the Defect, Damages, Deficiencies subsection, the report must be made subject to the resolution of the item (Market Value Condition cannot be As Is). - If Market Value Condition is Subject to Repair, there must be at least one item in the Defect, Damages, Deficiencies subsection with Recommended Action of Repair. - If Market Value Condition is Subject to Inspection, there must be at least one item in the Defect, Damages, Deficiencies subsection with Recommended Action of Inspection.
26.013	Final Value Condition Statement	Displays if Market Value Condition is not As Is	N/A	Variations of this sentence display based on the value condition(s) provided in Market Value Condition.

Market Value Condition (Choose all that apply)

Allowable Answer	Definition / Additional Guidance
As Is	Opinion of Market Value is based on the property in its current state as of the appraisal report effective date. The appraiser has not employed any hypothetical conditions or extraordinary assumptions. Note: If this answer is selected, Final Value Condition Statement (26.013) does not display, and no other conditions can be applied.
Subject to Completion Per Plans	Opinion of Market Value is based on the hypothetical condition that the improvements have been completed per plans and specifications as of the appraisal report effective date. Note: If this answer is selected, the standard Subject to Completion Per Plans language displays as part of the Final Value Condition Statement (26.013).
Subject to Inspection	Opinion of Market Value is based on the itemized list of required inspections being completed and the extraordinary assumption that any deficiency does not require alteration or repair. Note: If this answer is selected, the standard Subject to Inspection language displays as part of the Final Value Condition Statement (26.013).
Subject to Repair	Opinion of Market Value is based on the hypothetical condition that the repairs have been completed as of the appraisal report effective date. Note: If this answer is selected, the standard Subject to Repair language displays as part of the Final Value Condition Statement (26.013).

Reasonable Exposure Time, Effective Date, FHA REO Insurability Level#

Reconciliation: Appraisal Summary - Reasonable Exposure Time and FHA REO Insurability

Applies To	Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
All	26.010	Reasonable Exposure Time	Always required	Number of days or range of days	The total number of days the property would have been offered on the market prior to a hypothetical sale at market value as of the appraisal report effective date.
All	26.011	Effective Date of Appraisal	Always required	mm/dd/yyyy	The date to which the appraiser's analyses, opinions, and conclusions apply; also referred to as date of value. Reference published guidelines by the GSEs, government agencies, or other identified secondary market participants for specific guidance. Note: If Property Valuation Method (2.004) is: - Traditional Appraisal or Exterior Appraisal, Effective Date of Appraisal is the date of inspection. - Hybrid Appraisal or Desktop Appraisal, Effective Date of Appraisal is the date the appraiser develops the opinion of value.
FHA/VA/USDA	26.012	FHA REO Insurability Level	Required for FHA appraisals when Assignment Reason is REO	Choose an allowable answer from the Definition / Additional Guidance column	- Insurable - Insurable With Repair Escrow - Uninsurable Reference the appropriate government agency appraisal guidelines for more information.

Rows marked FHA/VA/USDA are shaded green in the PDF: they apply only to FHA, VA, or USDA appraisals.

Client Requested Conditions#

The Client Requested Conditions subsection displays when Additional Client Requested Conditions is Yes. Examples of when this subsection could be used include:

REO (see Examples: Client Requested Conditions)
Quick sale (liquidation) value (see Examples: Client Requested Conditions)
Resale restrictions (e.g., affordable housing units)
Loan programs that require a Subject To and As Is value (see Examples: Client Requested Conditions)

The "When to Include" column in this subchapter references appraisals for which Additional Client Requested Conditions is Yes.

Reconciliation: Client Requested Conditions

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
Not on Report	This is an appraiser input that does not display	Always required	Yes \| No	Additional Client Requested Conditions - Yes (The Client Requested Conditions subsection is included in the Reconciliation section) - No (The Client Requested Conditions subsection is not included in the Reconciliation section)

Examples: Client Requested Conditions#

Example 1:

Example 2:

Information for each Client-Requested Condition#

Enter a row and define each client-requested condition or restriction.

Reconciliation: Client Requested Conditions

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.014	Value Condition	Required for each client-requested condition	Choose one or more allowable answers from table (Value Condition)	- As Is - Subject to Completion Per Plans - Subject to Inspection - Subject to Repair
26.015	Marketing or Exposure Time	Required for each client-requested condition	Choose an allowable answer from the Definition / Additional Guidance column	Either the marketing or exposure time supporting the Alternate Opinion of Value and Value Condition for the indicated client-requested condition. - Client-Imposed Restricted Marketing Time (marketing time provided by client). Example: 0-30 days, also referred to as a "quick sale". - Reasonable Exposure Time (appraiser-defined). Note: If the client has requested both a marketing and exposure time, enter each of them on separate rows.
26.016	Duration	Required for each client-requested condition	Number of days or range of days	The total number of days indicated.
26.017	Alternate Opinion of Value	Required for each client-requested condition	Dollar amount	An additional opinion of value, based on the client requested conditions and / or restrictions.

Value Condition (Choose one for each Client Requested Condition)

Allowable Answer	Definition / Additional Guidance
As Is	The Alternate Opinion of Value (26.017) is based on the property in its current state based on the client requested conditions and / or restrictions.
Subject to Completion Per Plans	The Alternate Opinion of Value (26.017) is based on the hypothetical condition that the improvements have been completed per plans and specifications and the client requested conditions and / or restrictions.
Subject to Inspection	The Alternate Opinion of Value (26.017) is based on any required inspections identified in the appraisal and the extraordinary assumption that any deficiency does not require alteration or repair. Note: If this answer is selected, indicate the required inspections in Requested Condition Commentary (26.018).
Subject to Repair	The Alternate Opinion of Value (26.017) is based on the hypothetical condition that the repairs identified in the appraisal have been completed per the client requested conditions and / or restrictions.

Requested Condition Commentary#

Identify the type and definition of value provided, along with any other needed commentary. Use this commentary to state the type and definition of value and cite the source of the definition.

The summary of analysis and support for the Alternate Opinion of Value (26.017) can be included here and / or in Reconciliation of Market Value (26.019).

Reconciliation: Requested Condition Commentary

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.018	Requested Condition Commentary	Required if Additional Client Requested Conditions is Yes	Free-form	Overall commentary for client-requested conditions, which could include information that is not captured in the discrete data, or additional details to support the discrete data that is provided.

Reconciliation of Market Value#

This subsection always displays.

Reconciliation: Reconciliation of Market Value

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.019	Reconciliation of Market Value	Always required	Free-form	Describe or reconcile the different approaches to value and the data used to arrive at the final property valuation.

Apparent Defects, Damages, Deficiencies#

All defects, damages, and deficiencies for the appraisal are redisplayed in the Reconciliation section, along with the estimated cost to repair when applicable. Each defect, damage, or deficiency must be associated with the most appropriate section.

Site
Dwelling Exterior (for each dwelling)
Outbuilding (for each outbuilding)
Unit Interior (for each unit or ADU)
Vehicle Storage
Subject Property Amenities

If there are no defects, damages, or deficiencies for the appraisal, "None" displays, and the Apparent Defects, Damages, Deficiencies table does not display.

Apparent Defects, Damages, Deficiencies (Reconciliation)

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.020	N/A	Displays when there are defects, damages, or deficiencies for the property	N/A	The items listed below represent the As Is condition as of the effective date of this report

Information That May Display in Gray Bars#

The applicable URAR sections display as gray bars in the Apparent Defects, Damages, Deficiencies table.

Reconciliation: Apparent Defects, Damages, Deficiencies

Report Field ID	Report Label	Origin of Information (Section)	Definition / Additional Guidance
26.027 26.034	N/A	Dwelling Exterior - Structure Identifier 8.000 Unit Interior - Structure Identifier 10.001	Structure Identifier: An identifier (building name) created by the appraiser to differentiate among multiple dwellings on the property. Examples: Building 1, Building 2, Front, Rear Redisplays if applicable from the original section.
26.035 26.051	N/A	Unit Interior - Unit Identifier 10.002	Unit Identifier: An identifier assigned by the appraiser that differentiates between multiple units on the property. Examples: Unit 1, Unit 2, Primary Dwelling, ADU Redisplays if applicable from the original section.
26.042 26.050	N/A	Outbuilding - Outbuilding Type 12.001	Redisplays if applicable from the original section.

Information About Each Defect, Damage, or Deficiency#

Apparent Defects, Damages, Deficiencies (Reconciliation)

Report Field ID	Report Label	Origin of Information (Section)	Definition / Additional Guidance
26.021 26.028 26.036 26.044 26.052	Feature	- Site 4.100 - Dwelling Exterior 8.056 - Outbuilding 12.020 - Unit Interior 10.056	As previously entered in the original section: - Exterior Walls and Trim - Flooring - Foundation - Mechanical System - Roof - Walls and Ceiling - Windows - Other (Describe)
26.058	Feature	Vehicle Storage - Vehicle Storage Type 13.005	As previously entered in the original section.
26.064	Feature	Subject Property Amenities - Amenity Type 14.006	As previously entered in the original section.
26.022 26.029 26.037 26.045 26.053 26.059 26.065	Location	- Site 4.101 - Dwelling Exterior 8.057 - Outbuilding 12.021 - Unit Interior 10.057 - Vehicle Storage 13.006 - Subject Property Amenities 14.007	As previously entered in the original section: - Full Bathroom - Half Bathroom - Kitchen - Other (Describe)
26.023 26.030 26.038 26.046 26.054 26.060 26.066	Description	- Site 4.102 - Dwelling Exterior 8.058 - Outbuilding 12.022 - Unit Interior 10.058 - Vehicle Storage 13.007 - Subject Property Amenities 14.008	Description of the defect, damage, or deficiency, as previously entered in the original section.
26.024 26.031 26.039 26.047 26.055 26.061 26.067	Affects Soundness or Structural Integrity	- Site 4.103 - Dwelling Exterior 8.059 - Outbuilding 12.023 - Unit Interior 10.059 - Vehicle Storage 13.008 - Subject Property Amenities 14.009	Indicates whether the defect, damage, or deficiency affects the soundness and / or structural integrity of the improvement, as previously entered in the original section.
26.025 26.032 26.040 26.048 26.056 26.062 26.068	Recommended Action	- Site 4.104 - Dwelling Exterior 8.060 - Outbuilding 12.024 - Unit Interior 10.060 - Vehicle Storage 13.009 - Subject Property Amenities 14.010	The recommended action for the defect, damage, or deficiency, as previously entered in the original section: - Completion - Inspection - Repair (includes replacement) - None (does not require repair, replacement, completion, or inspection) Notes: - If Completion, Inspection, or Repair is reported for any defect, damage, or deficiency, the report must be made subject to the resolution of the item (Market Value Condition 26.009 cannot be As Is). - If Repair is selected, the estimated cost to repair may be provided.

Cost to Repair Reporting Options#

When included, the estimated cost to repair only displays in the Summary and Reconciliation sections. Reference published guidelines by the GSEs, government agencies, or other identified secondary market participants for specific guidance.

Reconciliation: Cost to Repair

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
Not on Report	This is an appraiser input that does not display	Required if there are defects, damages, or deficiencies	Choose an allowable answer from table (Cost to Repair Reporting Method)	Cost to Repair Reporting Method: Indicates how the cost to repair amount will be provided. - None - Total Cost - Itemized
26.026 26.033 26.041 26.049 26.057 26.063 26.069	Estimated Cost to Repair	Required for each defect, damage, or deficiency when Cost to Repair Reporting Method is Itemized, and Recommended Action is Repair	Dollar amount	The estimated cost to repair or replace the identified item.
26.070	Total Cost	Displays when Cost to Repair Reporting Method is Itemized	Dollar amount	Calculated: Sum of Estimated Cost to Repair for all applicable defects, damages, and deficiencies in the appraisal report.
26.072	Total Estimated Cost of Items Requiring Repair	Required when Cost to Repair Reporting Method is Total Cost	Dollar amount	The total estimated cost to repair or replace all applicable defects, damages, and deficiencies in the appraisal report, provided as a lump sum.

Cost to Repair Reporting Method (Choose one)

Allowable Answer	Definition / Additional Guidance
None	The appraiser does not provide any cost to repair information (Example 1).
Total Cost	The appraiser provides the Total Estimated Cost of Recommended Repairs as a lump sum (Example 2). - Total Estimated Cost of Items Recommended for Repair (26.072) displays underneath the Defects, Damages, and Deficiencies table.
Itemized	The appraiser provides the Estimated Cost of Repair for each defect, damage, or deficiency requiring repair (Example 3). - The itemized Estimated Cost to Repair column (26.026-26.069) displays in the Defects, Damages, and Deficiencies table. - Total Cost (26.070) displays at the bottom of the Defects, Damages, and Deficiencies table.

Example 1. Cost to Repair Reporting Method is None#

Example 2. Cost to Repair Reporting Method is Total Cost#

Example 3. Cost to Repair Reporting Method is Itemized#

As Is Overall Condition Rating#

Reconciliation: As Is Overall Condition Rating

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
26.071	As Is Overall Condition Rating	Required if New Construction is No, and Market Value Condition is Subject to Completion Per Plans or Subject to Repair	C1 to C6	Provide the As Is Overall Condition Rating reflecting the property's current condition if Market Value Condition is any of the following: - Subject to Completion Per Plans (such as an addition) - Subject to Repair Notes: - Reference Appendix 2: Condition and Quality Rating Definitions for definitions.
26.071	N/A	Displays when As Is Overall Condition Rating displays	N/A	Existing condition of the property as of the effective date of this appraisal, excluding all required repairs, alterations, or inspections

Reconciliation Exhibits#

All photos or images related to the Reconciliation section are displayed in the Reconciliation Exhibits subsection. If there are no photos or images, this subsection does not display.

Reconciliation Exhibits

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
See iGuide	Reconciliation Exhibits	If applicable	Photos or images	Photos or images relevant to the Reconciliation section may be provided, including images supporting the Alternate Opinion of Value, which display in Reconciliation Exhibits. If the photo or image is not specifically indicated, a caption may be provided to further identify the photo or image.