Is an appraiser required to label an extraordinary assumption in their appraisal report?

An appraiser is not strictly required to label an extraordinary assumption in their appraisal report, although doing so can enhance the clarity and transparency of the report. Labeling an extraordinary assumption helps users of the appraisal understand the context and any underlying conditions that may impact the value conclusion. It reinforces the idea that certain aspects of the appraisal process are based on assumptions that, if proven inaccurate, could affect the overall outcome of the appraisal. Including a label also promotes ethical practices and fosters trust between the appraiser and the report’s users.

While it is advisable to identify extraordinary assumptions, the requirement is not absolute under the Uniform Standards of Professional Appraisal Practice (USPAP), thus making it a matter of professionalism rather than a strict mandate. This fosters an environment of clear communication, helping stakeholders assess the reliability of the appraisal.