Which appraisal step follows identifying the problem?

Identifying the problem is a crucial first step in the appraisal process. Once the specific appraisal problem has been defined, the next step is to establish the scope of work. This step involves determining what needs to be done to address the identified problem. The scope of work outlines the parameters of the appraisal, including what data will be collected, which analytical methods will be used, and the extent of the research needed to provide a credible appraisal.

This process is important because it ensures that the appraisal meets any applicable standards, addresses the needs of the client, and is completed effectively. Without clearly defining the scope of work, an appraiser may overlook essential elements, resulting in an incomplete or inaccurate appraisal.

Subsequent steps, such as data analysis, market study, and final appraisal report, depend on the clearly defined scope of work. Each of these steps builds upon the framework established when the scope of work is laid out, underscoring its role as a foundational aspect of the appraisal process.