What is the first step an appraiser will perform when conducting an appraisal?

The first step an appraiser performs when conducting an appraisal is to state the problem. This foundational step involves clearly defining the appraisal's purpose and scope, including understanding the specific property to be appraised and the intended use of the appraisal report. By stating the problem, the appraiser sets the framework for the entire appraisal process. This includes identifying key elements such as the type of value being estimated (e.g., market value, investment value), the property type, and any specific considerations or conditions that may influence the valuation.

This preliminary phase is essential because it informs the appraiser about what data needs to be collected and analyzed, how to approach the valuation methods, and what the final report needs to communicate to the client or user of the appraisal. Clarity at this stage helps in avoiding confusion later in the process, ensuring that all subsequent steps align with the initial objective of the appraisal.

In contrast, while gathering and analyzing data, estimating the value of the land, and identifying the necessary data are also critical steps in the appraisal process, they occur after the appraiser has clearly defined the appraisal problem. Therefore, understanding the problem is the logical starting point for any successful appraisal.