5.06: Limitations of Valuators’ Reports
Unless you are reading a comprehensive valuation report, you should be aware of the report’s limitations. There are many reasons for limiting the amount of work that goes into a report, the most common reasons being the purpose of the report and the client’s budget. Limitations primarily affect the valuator’s access to information; additional information, if available, may alter the valuator’s conclusion. Even a comprehensive report may, in some circumstances, have limitations.
Valuators’ reports are inherently limited, mainly by scope of work.
If properly written, the valuator’s report will contain a paragraph in which the limitations are stated and in which the CBV will state that the conclusions could have been different if those limitations did not exist. It is important for a sound understanding of the report to know what the limitations are.
Contact MVI if you are unsure of the limitations in a valuator’s report, and how those limitations could impact the valuator’s conclusion.