Restricted Appraisal

A restricted appraisal is explained by USPAP (Uniform Standards of Professional Appraisal Practice) as follows:  “A Restricted Use appraisal must state a prominent use restriction that limits use of the report to the client and warns that the appraisers opinions and conclusions set forth in the report may not be understood properly without additional information in the appraisers workfile.” Basically it cannot be used by anyone but that the client and should not be presented to a third party as it is not detailed enough for them to fully understand it. It is most commonly used when an individual needs an estimate of value for their own purposes such as to decide what to offer for a property, in making a decision whether to pursue tax appeal or any other decision that does not require a third party to look over the appraisal, and doesn’t require a detailed printed analysis for the client to look at. In the case of the restricted appraisal offered by Rapid Appraisal, Inc. for tax appeal analysis there are some warnings to remember. First of all the appraisal is being made from the appraisers office so certain extraordinary assumptions are being made about the subject property and sales. These assumptions are made based upon the information provided by the owner and from town records. If a later appraisal finds any of these assumptions to be incorrect then the value estimate may change.  Finally the information provided to the owner from the restricted appraisal will not be sufficient for others to thoroughly understand the valuation process and cannot be used to settle any kind of dispute or appraisal decision involving more then the original client. It is just the starting point so the owner can decide if it is reasonable to proceed further with the process.