ATLANTA—When it comes to commercial real estate appraisals, the scope of work has to be defined for each appraisal report, and is more extensive for a commercial property than a residential property. So says Paulk Turner, director of J.H. Berry & Gilbert's appraisal and valuation services division.

In part one of this exclusive educational series, we discussed the benefits of the cost approach valuation. In part two, we explored the right model for income-producing properties. In part three we dived into the Income Approach. Now, we'll look at the concepts of scope and highest and best use.

“The scope includes the level of detail and research required for a particular job in order to produce credible results that are appropriate for the appraisal problem,” Turner tells Globest.com. He explains the parts that must be identified to determine the scope of an assignment include: the client and intended users; the intended use of the appraisal; the type and definition of value—such as market, foreclosure, investment—hypothetical conditions and extraordinary assumptions; the effective date of the appraisal; typical client expectations; and, typical appraisal work by peers for similar assignments. Turner says the more complex property will most likely have a more expansive scope of work than a smaller property.