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Assumptions And Limiting Conditions
Assumptions and limiting conditions is a recital of the assumptions and conditions which an appraisal conducted by a qualified appraiser is based on.
This is important as appraised value is often used by other parties to make important decisions.
Some of which include enabling the seller to determine if the transactions price is a good one, helping a lender to work out loan to value, tax matters, etc.
Because of the material implications the appraised value is, it can sometimes be contested by certain parties. Usually the seller as he finds the value too low.
A seller might used a different appraiser if he is unsatisfied with the numbers.
The assumptions and limiting conditions enable the observer to judge whether the factors applied in doing an assessment of value are fair and whether important points have been left out, or if minor negatives are blown out of proportion.
The usually assumptions however, are usually things that we take for granted like the absence of defects, clean title, zoning, etc.