How does an appraiser begin an appraisal?

An appraiser begins an appraisal by stating the problem, as this step sets the foundation for the entire appraisal process. Clearly defining the problem involves identifying the purpose of the appraisal, the property being appraised, and the scope of work involved. This step is crucial because it helps the appraiser understand what specific data and analysis will be necessary to arrive at an accurate value.

Stating the problem ensures that the appraiser is aligned with the client's needs and expectations, as well as with any regulatory or ethical standards that may apply. This foreground context allows the appraiser to focus their efforts on the relevant characteristics of the property, ensuring that the subsequent data gathering and analysis are targeted and effective.

In contrast, estimating the value of the land, gathering and analyzing data, and identifying the data needed are all important aspects of the appraisal process that follow after the problem has been clearly stated. Without a well-defined problem, these subsequent steps might lack direction and coherence, which could lead to inaccuracies in the appraisal’s outcome.