Intended uses for the online appraisal

With online appraisals, value conclusions are based on non-verifiable, client-provided information; therefore, there are limitations as to the types of property that should be appraised online and the intended uses to which those appraisals can be put. An example of a permitted use of an online appraisal would be a client's anticipated sale or purchase of an item of property. Online appraisals would not, however, be appropriate for donation appraisals for IRS tax deduction purposes of property valued in excess of $5000, nor would they be appropriate for many litigation purposes where the property is available for a hands-on inspection and, therefore, should be personally inspected by the qualified appraiser.

Additionally, clients seeking online appraisals should make use of appraisal management companies only for appraisal intended uses which do not foresee use by third parties. Instances might include appraisals for the client's contemplated sale or purchase of an item.

For online appraisals which are intended to be used by third parties, the client would be best served by working directly with the online appraiser as opposed to working through an appraisal management company. Instances might include the appraisal of "lost" property that is now the subject of a divorce proceeding; or in ascertaining the value of an item lost during a recent move. When working under the limited scope of work of an appraisal management company for such intended uses, the appraiser is often unable to acquire the necessary information to reach a viable conclusion that would not be misleading when read by third parties. However, by working directly with the appraiser, the necessary dialogue takes place, and the appraiser is better able to obtain the factual information needed to adequately support the final value conclusion.