What should an appraiser do if they suspect conflicting interests in an appraisal?

When an appraiser suspects conflicting interests in an appraisal, addressing the issue openly with the client is crucial for maintaining ethical standards and transparency in the appraisal process. The integrity of the appraisal relies on the appraiser’s ability to provide an unbiased estimate of value, which is compromised if there are undisclosed interests that could influence the final assessment.

By communicating any potential conflicts directly with the client, the appraiser demonstrates professionalism and adherence to the ethical guidelines established by appraisal and real estate organizations. This approach not only fosters trust between the appraiser and the client but also offers an opportunity to clarify any misunderstandings that may exist regarding the appraiser's role and responsibilities.

Addressing the issue ensures compliance with legal and regulatory standards, which often require appraisers to disclose conflicts of interest to uphold the integrity of their evaluations. This transparency is essential for the credibility of the appraisal in any legal, transactional, or financial context.

Options that suggest not disclosing the conflict or avoiding discussion undermine the ethical obligations of the appraiser and could lead to legal ramifications or loss of professional credibility. Making adjustments in the appraisal value without proper disclosure can distort the true value and mislead clients or other stakeholders involved in the transaction.