What must an appraiser disclose if they have a conflict of interest?

An appraiser must disclose their personal or financial interest that might influence their impartiality as an appraiser to ensure transparency and maintain the integrity of the appraisal process. This requirement is crucial because any conflict of interest can impair an appraiser’s objectivity, leading to biased opinions that may not accurately reflect the true market value of a property. By disclosing these interests, the appraiser allows clients and stakeholders to be aware of any potential biases that could affect the appraisal outcome, thereby upholding ethical standards in the profession. This practice fosters trust and confidence in the appraisal process and ensures compliance with professional guidelines and regulations, including those from the Uniform Standards of Professional Appraisal Practice (USPAP).

Other options do not encompass the complete range of disclosures required. Financial interests alone or personal relationships without the context of how they might influence the appraisal may not provide a full picture of potential conflicts. Similarly, referencing previous appraisals doesn’t directly address personal or financial conflicts, which are more pertinent to maintaining impartiality in current work.