Intended Use
The use or uses of an appraiser's reported appraisal or appraisal review as identified by the appraiser based on communication with the client at the time of the assignment. The intended use drives the scope of work.
Common intended uses include mortgage lending (purchase, refinance), estate settlement, tax appeal, divorce proceedings, insurance, relocation, and litigation support. The intended use determines the appropriate definition of value, scope of work, and report format. An appraisal prepared for mortgage lending follows GSE guidelines and uses market value, while an appraisal for estate settlement may use the IRS definition of fair market value and different methods. An appraisal cannot be used for purposes other than its stated intended use — a mortgage appraisal cannot be used for a tax appeal without a new assignment.
Related Terms
Scope of Work
The type and extent of research and analysis performed in an appraisal assignment.
Market Value
The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus..
Uniform Standards of Professional Appraisal Practice (USPAP)
USPAPThe nationally recognized ethical and performance standards for the appraisal profession, established by The Appraisal Foundation.
Appraisal Report
Under USPAP, a written report that summarizes the appraiser's analysis and conclusions in sufficient detail for the intended users to understand the basis of the value opinion.
More in Appraisal Process
View allEffective Date (Date of Value)
The date on which the appraiser's opinion of value applies.
Extraordinary Assumption
An assumption that is directly related to a specific assignment and, if found to be false, could alter the appraiser's opinions or conclusions.
Hypothetical Condition
A condition that is contrary to known fact but is assumed for the purpose of analysis.
As-Is Value
The value of a property in its current physical condition, as of the effective date of the appraisal, without any hypothetical conditions or extraordinary assumptions about future improvements or changes..