Real estate appraisals are often misunderstood as one size fits all documents. Plug in a few comparable sales, check the box, and a value appears. In reality, an appraisal is far more deliberate. It is a legal document, developed for a specific purpose and written for a specific audience. When either the purpose or the audience changes, the reliability of the report can quickly fall apart.

This is why two concepts sit at the core of every credible appraisal assignment: intended use and intended user. These principles are established under the Uniform Standards of Professional Appraisal Practice, and they shape every meaningful decision made throughout the appraisal process. From the scope of work and depth of research to the definition of value, effective date, and reporting format, everything flows from these initial determinations.

For estate attorneys and CPAs who rely on appraisal reports in probate administration, estate tax filings, trust accounting, and litigation support, understanding this framework is not an academic exercise. It is foundational to whether a report can actually be relied upon.

Can an Appraisal Be Reused for a Different Purpose?

An appraisal is not a universal certificate of value. It is a purpose built analysis designed to answer a specific valuation question for a specific party. Intended use and intended user are not technical formalities buried in fine print. They are safeguards that protect everyone relying on the report.

• Intended Use defines why the appraisal is being completed and how it will be relied upon.
• Intended User identifies the client and any other parties explicitly authorized to rely on the appraiser’s opinions and conclusions.

This distinction matters in practice. A report prepared for mortgage lending cannot simply be reused for litigation, estate settlement, or tax reporting. In the same way, an appraisal developed for estate tax purposes, effective as of a decedent’s date of death, is not appropriate for pricing a property for sale in today’s market. Even when the property itself has not changed, the scope of work, value definition, and effective date may no longer align with the new purpose.

Each assignment carries its own assumptions, data requirements, and analytical focus. When the intended use changes, the appraisal assignment changes with it.

Regulatory and Legal Implications

From a regulatory standpoint, the Internal Revenue Service requires that appraisals clearly identify the taxpayer and state the intended use of the report. When those elements are missing or unclear, issues can arise in estate tax filings or charitable contribution matters.

In legal settings, the importance of these distinctions becomes even more pronounced. When an attorney engages an appraiser for litigation support and is identified as the sole client, the report may be protected under attorney client privilege. In those situations, the appraisal is not intended for broader distribution or reliance by other parties. Attempting to use it outside that context can create procedural and evidentiary problems.

The consequences of crossing these boundaries are not theoretical. Courts have rejected appraisals that were used outside their intended scope. Lenders and underwriters routinely flag reports that do not match the stated use or audience. In litigation, opposing counsel often scrutinizes intended use and intended user language as a way to challenge credibility. Relying on an appraisal that was never meant for your specific purpose can introduce unnecessary risk, delays, and expense.

What Makes a Real Estate Appraisal Legally Defensible

Appraisal competency is not just about market knowledge or valuation techniques. At its core, it is about alignment.

A defensible appraisal is one where the purpose is clear, the audience is understood, and the analysis supports that context from start to finish. This begins with selecting the correct definition of value. In some situations, market value is appropriate. In others, such as estate planning or tax reporting, fair market value is required. While the terms sound similar, they are governed by different standards and expectations. Applying the wrong definition in the wrong context can undermine an otherwise solid analysis.

The effective date is equally important. Many estate and trust assignments require retrospective valuations, often as of a date of death. These appraisals must be supported with historical market data and clearly communicated as such. A report that does not clearly establish its effective date can mislead its reader and fail to serve its intended purpose. These decisions are not arbitrary. They are driven by the appraisal’s original purpose and the identity of its intended user. USPAP requires appraisers to communicate in a way that is meaningful and not misleading, and that responsibility cannot be met without clarity at the outset.

This is where the difference between a checkbox appraisal and a professional appraisal becomes apparent. A competent appraiser does not simply complete a form. They shape the scope of work, analysis, and communication style to fit the legal and practical needs of the client. They consider how the report will be reviewed, relied upon, and potentially challenged.

Building an Appraisal That Can Be Relied Upon

Without proper alignment, even an accurate opinion of value can be questioned or dismissed. With it, the appraisal becomes a reliable tool that supports decision making, protects advisors and clients, and performs as intended.

An appraisal’s credibility is not found in its formatting or length. It is built on its foundation. Intended use and intended user define the direction and limits of the entire assignment. When those elements are respected, the result is a report that is not only well written, but also defensible and useful.

My role as an appraiser is to deliver that level of clarity and care. I do not recycle reports or assume one approach fits every situation. Each appraisal is developed with purpose, tailored to its user, and aligned with the standards that allow it to stand up to scrutiny. When an appraisal starts with the right questions, it becomes far more than a number on a page.