Scope of Work Rule


With regard to appraisal assignments Scope of Work refers to a Uniform Standards of Professional Appraisal Practice USPAP Rule that notes that "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."  USPAP goes on to note that "An appraiser must property 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 provide credible assignment results."


Appraisers can make choices regarding what the believe the scope of work is for a particular appraisal assignment, however, they are responsible for their choices.  "Relevant evidence and logic" are required to support credible results.  Solving appraisal problems can be influenced by the quality and quantity of the data that is available in the market.  As markets deteriorate, it becomes more difficult to secure the data necessary to complete an assignment.  An article was written and is displayed at Appraisal Articles entitled "Appraising Commercial Real Estate in Turbulent Times."


Thus, appraisers identify appraisal problems and decide how to solve them.  Appraisal problems can, at times, be solved by using different applications of the same basic approaches.  Appraisers are usually judged based on what their "peers" would have done to solve a similar appraisal problem.  If it it typically inappropriate to use the cost approach and the income approach, as is often the case when vacant land is valued, then the approaches are considered but not included in the report, and peers would likely agree that the inclusion of the approaches was not necessary.


Appraisals problems can be relatively easy to solve when properties are simple, small and no atypical conditions exist.  Larger, more complex properties that have planned improvements (income projections), multiple tenants, mixed-uses, excess land or are special-purpose in nature can be much more difficult to appraise.  


Contact us with your questions or concerns regarding the Scope of Work Rule or regarding your appraisal assignment in Nevada via e-mail at or by phone at 1-702-568-6699. 



Copyright 2007 Horizon Village Realty & Appraisal

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.