Which of the following is a step in the USPAP appraisal process?

• A. Prepare the report
• B. Define problem
• C. Gather data
• D. Set a listing price

Answer: (B)

Defining the problem is the starting point of the USPAP appraisal process. It sets what you’re trying to solve: who the client and intended users are, what type of value is to be developed (for example market value, investment value), the effective date of the value, and the property or data to be analyzed. This early clarification guides every subsequent step—scope of work, data collection, methods, analysis, reconciliation, and finally the report. Without clearly defining the problem, you wouldn’t know what data to gather, which appraisal approaches to apply, or how to present the result in a way that matches the assignment.

Preparing the report happens after you’ve developed and reconcilied the value, so it’s not the initial step. Gathering data is part of the data collection phase, which follows after the problem is defined. Setting a listing price is not an appraisal activity under USPAP; it’s a marketing decision and may not reflect the appraisal process or standards.