What must an appraisal report include to allow intended users to understand the scope of work performed?

The inclusion of sufficient information in an appraisal report is crucial for intended users to grasp the scope of work performed. This means that the report should clearly articulate the methods, data sources, and analytical techniques used by the appraiser in reaching their conclusions. Sufficient information ensures that intended users, whether they are clients, lenders, or other stakeholders, can follow the appraisal process and trust the findings.

Understanding the scope of work is vital as it gives insight into what the appraiser did, why they did it, and how it pertains to the value conclusion presented. It helps in establishing the credibility of the report and contributes to transparency, which is essential in appraisal practices.

Other elements like an executive summary, detailed background, and comparative analysis may be relevant to an appraisal report, but they do not specifically ensure that the scope of work is conveyed comprehensively. An executive summary might provide a high-level overview, and a detailed background can give context, while a comparative analysis can support value conclusions. None of these elements alone guarantees that intended users will fully understand the breadth and specifics of the work performed. Therefore, sufficiency of information is the most critical requirement for conveying the scope of work.