In a Restricted Appraisal Report, how must the exclusion of any valuation approaches be handled?

In a Restricted Appraisal Report, if certain valuation approaches are excluded, it is essential that this exclusion is clearly explained. This is because the report is intended for a specific client or intended user who may not have the same level of understanding as a broader audience. An explanation provides transparency and allows the client to understand the reasoning behind the decision to omit these approaches, ensuring that the report meets the requirements and expectations of all parties involved.

By detailing the exclusion, the appraiser demonstrates due diligence and professionalism, reinforcing the credibility of their work. This practice aligns with the standards set forth in the National Uniform Standards of Professional Appraisal Practice, which emphasize clarity and completeness in appraisal communication. Without this explanation, the report may leave the client with unanswered questions regarding the overall valuation methodology, potentially leading to misuse or misinterpretation of the findings.