Which document typically outlines the details of an appraisal engagement?

The document that typically outlines the details of an appraisal engagement is the engagement letter. This letter serves as a formal agreement between the appraiser and the client, delineating the scope of the appraisal, the purpose of the assignment, the expected deliverables, timelines, and any specific conditions or instructions that may be relevant to the engagement. It establishes the foundation for the professional relationship and ensures that both parties have a clear understanding of their roles and expectations throughout the appraisal process.

While an appraisal report is indeed a critical document that presents the findings and conclusions of the appraisal, it is produced after the engagement has been defined. The sales contract and market analysis do not serve the same purpose in establishing the terms of the appraisal engagement; instead, they may provide relevant data that inform the appraisal but are not used to outline the engagement itself. Consequently, the engagement letter is key to initiating the appraisal process and ensuring all necessary elements are covered.