It is the appraiser’s responsibility to determine the appropriate market place relevant to the items under appraisal, so says USPAP (Uniform Standards of Professional Appraisal Practice). In most situations the scope of work -- the purpose and intended use of the appraisal -- will be an important element in deciding the appropriate market place for the items under consideration. If you are preparing an appraisal of the fair market value of items for estate purposes, is the appropriate market place for the item(s) different from that you might use if the appraisal is for insurance purposes? I think it often is, although there might be some situations where the two values intersect.
What I learned at the 7 hour update USPAP class is that I need to be far more aware of various appraisal value definitions than I currently am. It doesn’t help that the different appraisal organizations have their own versions of these definitions. Or that various State & Federal courts have different wordings based on precedent rulings. There are new USPAP changes that make appropriate market place and highest and best use (from the Real Estate world) sort of synonymous. At the moment all I can do is make certain I explain the marketplace I am using, but it would be most helpful if the various stakeholders could get together and agree on some definitions.