How do the appraiser and client determine the appropriate Scope of Work? The design of the Scope of Work for an appraisal assignment is clearly stated in the USPAP Scope of Work Rule:
“For each appraisal, appraisal review, and appraisal consulting assignment, an appraiser must:
identify the problem to be solved;
determine and perform the scope of work necessary to develop credible assignment results; and
disclose the scope of work in the report.
An appraiser must properly identify the problem to be solved in order to determine the appropriate scope of work. The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results.”
USPAP continues with the following comment:
Scope of work includes, but is not limited to:
the extent to which the property is identified;
the extent to which tangible property is inspected;
the type and extent of data researched; and
the type and extent of analyses applied to arrive at opinions or conclusions.
Appraisers have broad flexibility and significant responsibility in determining the appropriate scope of work for an appraisal, appraisal review, and appraisal consulting assignment.
Credible assignment results require support by relevant evidence and logic. The credibility of assignment results is always measured in the context of the intended use.