Who is considered an intended user in appraisal practice?

An intended user in appraisal practice refers specifically to individuals or entities that the appraiser expects will rely on the appraisal report. This includes parties explicitly identified through communication with the client, indicating a clear understanding of who will benefit from the appraisal. These intended users are typically those who have a direct interest in the appraisal outcome, such as lenders, buyers, or sellers involved in a transaction.

The concept of intended users is crucial as it helps define the scope and purpose of the appraisal, guiding the appraiser in how to conduct the assessment and what information to include in the report. The clarity in communication regarding who the intended users are ensures that the report meets the specific needs and expectations of these parties, and it establishes a framework for the appraiser’s responsibilities.

In contrast, concepts like the general public, the appraiser’s colleagues, or regulatory bodies do not constitute intended users as they are not the primary parties relying on the appraisal for financial or legal decisions. The general public may have an interest in real estate market trends but does not have a defined interest in any specific appraisal. The appraiser’s colleagues might be involved in the profession but are not the direct recipients of the report. Regulatory bodies oversee compliance and standards but do not rely on appraisals for