After determining the subject property's highest and best use, what is the next step an appraiser will typically take?

Once the highest and best use of a property has been determined, the next logical step for an appraiser is to estimate the value of the land. This step is crucial as it provides a foundation for the overall valuation process. Knowing the potential uses for the property allows the appraiser to accurately assess its market value based on these optimal scenarios.

Estimating the value of the land involves analyzing comparable sales, understanding local market conditions, and considering the specific attributes of the land that contribute to its value. This information is integral, as land value often significantly influences the overall property valuation, especially if the property's best use includes development or other enhancements.

While gathering and analyzing data is an ongoing part of the appraisal process, and utilizing three approaches to value the property occurs later, focusing on land value post-highest and best use establishes a baseline for further valuation methods and reconciliations. The reconciliation of values to determine a final appraisal value is typically the last step, where all collected data and methods are synthesized into a completed appraisal.