What is a common reason for conducting a limited appraisal?

A limited appraisal is often conducted to assess specific risks or damages related to a property. This type of appraisal focuses on particular aspects of the property rather than providing a comprehensive valuation. For instance, it may be used in situations where the property has been affected by environmental hazards, structural issues, or other specific circumstances that need detailed evaluation. By honing in on these particular factors, appraisers can provide clients with targeted insights that may be crucial for decision-making related to potential repairs, insurance claims, or legal disputes.

The other situations listed, such as determining fair market value for a sale, refinancing purposes, or estate planning, typically require a full appraisal. A complete appraisal provides a broader analysis and is essential for these processes, as they call for an overall assessment of the property to establish a reliable market value or facilitate financial planning.