After gathering and analyzing data, what does an appraiser do next according to professional appraisal practice?

In professional appraisal practice, determining the highest and best use of a property is a crucial step that follows the gathering and analyzing of data. This process involves assessing the most profitable, legally permissible, and maximally productive use of the property, which can significantly influence its value.

The highest and best use analysis considers various factors such as zoning regulations, physical characteristics of the property, and current market conditions. This helps establish a foundation for further valuation work, as the appraiser benchmarks the property's potential against different usage scenarios. Identifying the highest and best use is essential before moving forward to estimate the property’s value using various approaches.

While other options involve important aspects of the appraisal process, they typically follow the determination of highest and best use. For example, considering the value of the land or reconciling values to arrive at a final appraisal value generally relies on understanding what use of the property maximizes its value in the current market context.