When appraisers perform valuation services outside of appraisal practice, what must they avoid?

When appraisers perform valuation services outside of standard appraisal practice, it is crucial for them to avoid misleading the client and other intended users. This requirement stems from the ethical obligation to provide accurate and truthful information based on the data and analysis undertaken. Misleading clients could result in significant financial decisions being made based on incorrect assumptions or interpretations, which might lead to liability issues and damage to the appraiser's professional reputation.

Maintaining clarity and honesty in all communications ensures that clients and intended users can trust the information they receive. This trust is vital, especially when the valuation could influence critical decisions such as buying, selling, or financing the property. Transparency in the appraisal process and the methodology used helps to foster integrity within the profession.

While overestimating the value, being overly critical, or providing vague assessments are concerning practices, they relate more to the quality of the appraisal rather than the fundamental obligation to avoid misleading clients. Thus, the focus on misleading intentions highlights the core ethical standards appraisers must adhere to in all valuation scenarios.