What is necessary for determining the appropriate scope of work in appraisal?

The identification of intended use is crucial for determining the appropriate scope of work in appraisal because it establishes the purpose for which the appraisal is being conducted. Understanding the intended use helps the appraiser decide on the level of detail required in the analysis, the methodologies to employ, the data to gather, and the type of report to produce.

For instance, if the intended use is for a lending purpose, the lender may require a different scope that ensures compliance with specific regulations and standards. Conversely, if the appraisal is being done for internal decision-making, the depth and nature of the analysis may vary significantly. This clarity regarding intended use directly influences how the appraiser approaches the assignment and what information is necessary to provide a credible and reliable opinion of value. Ultimately, determining the appropriate scope of work hinges on a clear understanding of why the appraisal is needed and who will rely on it for decision-making.