Who is responsible for identifying the intended use in an appraisal assignment?

In an appraisal assignment, the responsibility for identifying the intended use lies primarily with the client. The client is the party who engages the appraiser and articulates the purpose of the appraisal, such as determining the value for a sale, financing, or investment analysis. Understanding the intended use is crucial because it guides the appraiser in selecting the appropriate methodologies, approaches, and level of detail required for the assignment.

While the appraiser needs to validate that they understand the intended use before performing the appraisal, it is not solely their responsibility to identify it. Instead, they must ensure clarity from the client about how the appraisal will be utilized and ensure that the appraisal complies with the relevant standards and requirements associated with that intended use. Therefore, while the appraiser plays a significant role in recognizing and understanding the intended use, it is the client's articulation of that intended use that is fundamental in shaping the appraisal process.