How should an appraiser handle potential conflicts of interest?

An appraiser should disclose any potential conflicts of interest and take measures to avoid bias to maintain the integrity and objectivity of the appraisal process. The appraisal profession is built on trust and impartiality, so identifying and addressing conflicts of interest is crucial. By being transparent about potential influences that might impact their judgment, an appraiser not only adheres to ethical standards but also reinforces their credibility with clients and stakeholders.

Additionally, taking steps to mitigate bias ensures that the appraiser's conclusions are based on sound evidence and valuation methods rather than external pressures or personal interests. This approach ultimately serves to enhance the quality, reliability, and defensibility of the appraisal. It's important for appraisers to be proactive about these issues, as failure to adequately disclose conflicts could lead to legal repercussions or damage to their professional reputation.