In a Restricted Appraisal Report, what must be done regarding the exclusion of any valuation approaches?

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In a Restricted Appraisal Report, all significant decisions regarding the exclusion of any valuation approaches must be clearly explained. This requirement is crucial because the appraiser needs to provide transparency about the valuation process and the methodologies employed or omitted. By detailing the reasoning behind the exclusion of certain approaches, the intended users of the appraisal gain an understanding of the report's limitations and the context in which the valuation was performed.

This transparency not only builds trust with the users of the report but also supports compliance with the relevant appraisal standards. If the exclusion of valuation approaches is left unexplained or inadequately documented, it could lead to misunderstandings about the appraisal's findings, reducing the effectiveness and reliability of the report. Providing a thorough explanation enhances the credibility of the appraisal and ensures that the report meets the needs of its intended audience.

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