What is the first step in the appraisal process?

The first step in the appraisal process is to identify the problem. This step is crucial as it defines the scope and context of the appraisal assignment. By clearly establishing what needs to be appraised, the appraiser can determine the specific purpose of the appraisal and the value that will be sought. This foundational understanding guides all subsequent steps, such as data gathering, selection of methodologies, and ultimately determining value.

Identifying the problem ensures that the appraisal is aligned with the client's needs and the intended use of the appraisal report. By defining the problem precisely, the appraiser sets the stage for a more effective and focused analysis, which is essential for arriving at a reliable value conclusion later in the process.