What must an appraiser do in relation to the purposes of the appraisal?

Specifying the purpose of the valuation is essential for an appraiser because it establishes the context in which the appraisal is conducted. Different purposes, such as financing, taxation, or sale assessments, can significantly influence the appraisal process, the methodologies used, and the conclusions drawn. By clearly communicating the purpose, the appraiser ensures that the valuation meets the specific needs of the client or the intended use of the report.

Identifying the purpose also allows the appraiser to focus on relevant aspects of the property and market conditions that are pertinent to that specific valuation scenario. This concentration can affect the choice of comparable properties and the adjustments made, resulting in a more accurate and applicable appraisal.

Other choices, while they contain relevant points, do not address the core requirement of articulating the appraisal's purpose, which is foundational to the valuation process itself.