limited appraisal

limited appraisal

An outdated expression due to the July 1, 2006, amendments to the Uniform Standards of Professional Appraisal Practice (USPAP).Real estate appraisals typically use three separate approaches to arrive at various values, and then the appraiser reconciles the approaches to reach one opinion of value.The approaches are income approach,comparable sales approach,and the cost-to-rebuild approach.In a limited appraisal,one or more of the approaches might have been omitted. (There is nothing shoddy about this.) Raw land cannot have a cost-to-rebuild analysis, for example. Under older standards, an appraiser would be required to specify that the appraisal was limited and then designate the appropriate departure rule.Today,appraisers are allowed more latitude,as long as they and the client have a clear understanding of the scope of the work requested. The term limited appraisal is no longer necessary.