What must each value estimate in appraisal include?

Each value estimate in appraisal must include the entire valuation process because this comprehensive approach ensures that all relevant data is considered. This process typically involves analyzing the property's highest and best use, applying appropriate valuation methods (such as the cost approach, sales comparison approach, or income approach), and reviewing comparable sales data. By integrating all aspects of the valuation process, an appraiser can derive a more accurate and reliable value estimate that reflects the true worth of a property.

Focusing solely on just one aspect, whether that be the highest and best use analysis, the application of a single approach to value, or merely compiling a registry of previous sales, would fail to encompass the breadth of factors needed for an accurate appraisal, leading to potential inaccuracies and a less defensible value conclusion.