2.3.1.8. Description of Scope of Work. The appraiser shall use this section of the report to identify the seven critical elements that defined the appraisal problem to be solved: 

• Client 

• Intended users 

• Intended use 

• Definition of market value 

• Effective date 

• Property characteristics 

• Assignment conditions 

This section shall include an explanation of the intended use for the appraisal, and a description of the property rights appraised, which should be provided to the appraiser by the client agency. In most instances the intended use of the appraisal will be to provide an opinion of the market value as of a specific date.117 In an appraisal assignment involving a partial acquisition, the intended use of the appraisal will be to provide an opinion of the market value of the larger parcel before the acquisition and an opinion of the market value of the remaining property after the acquisition. 

It is imperative that the appraiser utilize the correct definition of market value. For appraisals prepared under these Standards, appraisers shall use the definition of market value found in Section 1.2.4 of these Standards. 

This definition must be placed in this portion of the appraisal report. No other definition of market value for purposes of appraisals made under these Standards is acceptable,118 unless otherwise required by a specific and cited federal law or regulation. 

The appraiser should describe the investigation and analysis that was undertaken in developing the appraisal. The geographical area and time span searched for market data should be included, as should a description of the type of market data researched and the extent of market data confirmation. The appraiser should state the references and data sources relied upon in developing the appraisal. 

The applicability of all approaches to value shall be discussed and the exclusion of any approach to value shall be explained. 

The appraiser has the burden of clearly identifying and explaining the implications of any hypothetical condition or extraordinary assumption adopted. The required explanation and discussion of the implications of such hypothetical conditions or extraordinary assumptions must be included in this portion of the appraisal report. Each hypothetical condition and extraordinary assumption must be labeled as such and any legal instructions must be included in the addenda of the report.

117 For a discussion of the legal requirements regarding the effective date of value, see Section 4.2.1.1.
118 For a discussion of the legal basis for this definition of market value and this specific requirement, see Section 4.2.