Inventive limiting condition

Discussion in 'Appraisal Review' started by mgalleshaw, May 2, 2012.

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  1. mgalleshaw

    mgalleshaw Sophomore Member

    0
    May 10, 2009
    Professional Status:
    IT Professional-Appraisal Related
    State:
    North Carolina
    Good point...I can think of all sorts of negatives that could tank a value. For that matter, I can think of some things that might send a value sky high!(remember inflation?) But why stick this language into a report? Aren't our clients smart enough to understand that real estate ownership comes with certain risks? We can't anticipate them all or protect our values and forecasts from them, or caveat our way out of them.
     
  2. Mr Rex

    Mr Rex Elite Member

    14
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I have been putting a blurb in my reports that all bets are off if the Mayans are right, but I guess its overkill if they really are.
     
  3. Riick

    Riick Elite Member

    11
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    Have you forgotten this is the era of moral hazard?
    Sure, they're smart enough, but officially, when the dippity-doo hits the fan,
    they are the victims of sleazy mortgage brokers and even sleazier appraisers.
    (or was that sleazy appraisers and even sleazier mortgage brokers?, I mis-rememeber where is my Banker Talking Points folder??)

    ,
     
  4. Doug DeMars

    Doug DeMars Senior Member

    0
    Mar 20, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Nice one Rex! :)

    I bit more clever than what I was thinking. Really though...what's the point? As of the EAD all "troubles" are accounted for. The only sticky spot is claiming a "stable" market...I sure wish there was an "unstable" checkbox...
     
  5. aalderman1

    aalderman1 New Member

    0
    May 10, 2010
    Professional Status:
    Certified General Appraiser
    State:
    North Carolina
    I say strike the limiting condition and add your quote above as an extraordinary assumption, or a normal assumption, depending on the client. :)

    I jest, of course. I sometimes think, perhaps wrongly, these assumptions are a cover for someone not having done his/her due diligence. I know that's not always the case, but you cannot condition and assume your way out of the work of understanding the market, which is kind of what it sounds like even when it's not the case.
     
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