In appraisal, what are the limitations and assumptions that can affect valuation known as?

In the context of appraisal, limitations and assumptions that can influence the valuation of a property are referred to as limiting conditions. These are important aspects of an appraisal report, as they outline the specific constraints and factors under which the appraisal was conducted. Limiting conditions may include assumptions about market stability, access to the property, or the absence of specific hazards, all of which can significantly impact the accuracy and reliability of the valuation.

By clearly stating these limitations and assumptions, the appraiser provides transparency regarding the findings of the appraisal. This helps stakeholders understand the context in which the valuation was made and informs them of any factors that may need to be considered when interpreting the results. Recognizing these conditions is vital for both the appraiser and the client, ensuring that the appraisal is understood within the proper framework.