What is the first step in determining the appropriate scope of work for an appraisal?

Determining the appropriate scope of work for an appraisal begins with identifying the problem to be solved. This is essential because the appraisal process is fundamentally driven by the specific needs and objectives of the client and the context of the appraisal assignment. Understanding the problem helps clarify what information is necessary, the level of detail required in the analysis, and the methods that should be employed to address the client's objectives effectively.

Defining the problem sets the foundation for how the appraisal will be approached and influences decisions about data collection, the type of analysis to be performed, and the final reporting format. If the problem is not accurately identified, it may lead to unnecessary work or a misalignment between what the appraiser delivers and what the client truly needs, ultimately affecting the appraisal's utility and effectiveness.

While discussing with the client, estimating timelines, and reviewing previous appraisals are also important steps in the appraisal process, they typically come after the problem has been defined. Each of these aspects supports the overall scope but relies on the initial framework set by a clear understanding of the problem at hand.