What must appraisers avoid when performing valuation services outside of appraisal practice?

When appraisers perform valuation services outside the traditional realm of appraisal practice, it is crucial that they avoid misleading clients and other intended users about their role. Transparency regarding the appraiser's qualifications, the purpose of the valuation, and the nature of the services being provided is essential for maintaining trust and integrity in professional relationships. Misleading clients can lead to misinterpretations of the value and implications of the services offered, which might result in poor decision-making and potential financial repercussions.

Clarifying one's role ensures that clients have realistic expectations and understand the limitations of the services provided. This practice aligns with ethical standards and professional responsibility, reinforcing the notion that appraisers must ensure clarity in their communications to uphold the credibility of the profession.

Other options can create issues but do not directly relate to the central responsibility of clear communication about one’s role. Overvaluing the property, while problematic, can be a consequence of lack of diligence rather than a specific issue of misrepresentation. Reducing the scope of work or ignoring local market conditions can affect the quality and accuracy of the valuation but don't directly relate to miscommunication about the appraiser's role. Thus, withholding clear information about their position and services is the most critical concern when it comes to valuation services outside of appraisal practice