Home Appraisal FAQs - Appraisals What is the Scope of Work of a real estate appraisal?
What is the Scope of Work of a real estate appraisal?

Appraisal Scope of WorkUSPAP has clarified the guidelines for the scope of work for appraisals (including real estate). Appraisers are responsible for identifying the scope of work needed to produce credible appraisal results, identifying six key parts of the appraisal problem (Intended Use) at the beginning of each assignment:

  • Client and other intended users
  • Intended use of the appraisal and appraisal report
  • Definition of value (e.g. -- market, foreclosure, investment)
  • Any hypothetical conditions or extraordinary assumptions
  • The effective date of the appraisal analysis
  • The salient features of the subject property

The appraisal's scope of work should include the methodologies to be used, the extent of investigation, and the applicable approaches to value. The rule provides an explicit requirement that the minimum standards for scope of work are:

  • Expectations of the client and other users
  • The actions of the appraiser's peers who carry out similar assignments

The Scope of Work is the first step in any appraisal process. Without a strictly defined Scope of Work an appraisal's conclusions may not be viable. By defining the Scope of Work an appraiser can begin to accurately develop a value opinion for a given property for the intended user, which is the intended use of the appraisal.

Still have a questions? Nexus Analytixâ„¢ can provide answers for your real estate appraisal questions. Please contact our offices at, Phone: (856) 985-0008 or by e-mail.


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