Intended Use

[Mztk1]

Your client is being less than truthful and very likely does not understand the importance of you having awareness of the REAL Intended Use of the appraisal. I'm very cautious regarding working for someone who is not truthful when engaging me.

"Personal use" runs the gamut from "using" your report to line the bottom of the bird cage to matters of personal bankruptcy etc. It is important for you to know which use is the use you are serving.

Question: Would it make a difference to you whether or not the appraisal is one that one day may require your testimony in court? Importantly, does it make a difference to your client?

You need to have a "heart-to-heart" with your client.

"Personal use" is a terrible explanation, because it is open ended. Financial Planning is also too broad. The use has to be limited. That's why I put for "Informational use only" in these types of reports. You do get people who, for no other reason than wanting to know the value of their house, ask for an appraisal.

 

[hglenbetts]

That is a statement of the applicable definition of value. It is not a statement of the intended use.

"Personal use" could possibly mean for marketing, divorce, bankruptcy, financial planning, private financing, etc. The scope of work could be very different for those different uses.

Since the credibility of assignment results is judged in the context of the intended use, I recommend being VERY specific about the intended use.

Thank you. This was my concern, exactly. I'll try to educate Mr. HO on the use as it relates to the scope of work.

Thanks all for the great comments, as usual.