Why is identifying the intended use of the appraiser's opinion essential?

Identifying the intended use of the appraiser's opinion is essential because it directly informs the appropriate scope of work for the appraisal. The intended use guides the appraiser in determining how detailed the analysis needs to be, which methods to apply, and what data to collect. For instance, a valuation for a bank loan may require a different level of detail and rigor compared to an appraisal for tax purposes or a family estate settlement. By understanding the end goal of the appraisal, the appraiser can tailor their approach to meet specific client needs while adhering to applicable standards and regulations. This ensures that the appraisal report is relevant, accurate, and compliant with the expectations for its intended use.