What does the intended use of an appraisal refer to?

The intended use of an appraisal specifically pertains to the client's purpose for the appraisal report. This concept is crucial as it informs the appraiser about the context in which the appraisal will be utilized, ensuring that the appraised value meets the necessary requirements for that specific situation. For example, an appraisal intended for mortgage financing may focus on determining market value, while one intended for a property tax dispute might emphasize the assessed value relative to comparable properties. The clarity around the intended use helps ensure that the appraisal aligns with the needs of the client or end user.

Understanding the intended use is foundational in the appraisal process because it guides how the appraisal is conducted and reported. The focus is not on the definition of property ownership itself, nor on evaluating similar properties' market values or the regulatory policies of appraisal boards. Instead, the key element is recognizing the client's goals to ensure that the appraisal provides the necessary information for decision-making related to that purpose.