What type of value must be identified by the appraiser?

The correct answer is the type of value being developed in the appraisal. In real estate appraisal, it is crucial that the appraiser clearly identifies the specific type of value they are determining for the property. This could include market value, investment value, or other specialized values depending on the purpose of the appraisal and the needs of the client.

The type of value being appraised is foundational because it dictates the methodology and approach the appraiser will take, as different types of value might require different techniques, data sets, and analytical frameworks. For example, appraising for market value involves estimating what a property would sell for in the current market, while appraising for insurance purposes may require determining replacement cost, which is different from market pricing.

Understanding this context helps clarify the importance of specifying the value type in the appraisal process, as it directly influences the final conclusions drawn in the appraisal report. In contrast, market value, intrinsic value, and historical value represent specific categories or concepts rather than addressing the fundamental requirement to define the purpose and type of value in the appraisal.