What must an appraiser do when they find an extraordinary assumption to be necessary for the appraisal?

When an appraiser identifies that an extraordinary assumption is necessary for the appraisal, it is essential to disclose this assumption clearly in the appraisal report. An extraordinary assumption refers to a fact that, if not true, could alter the appraiser's opinions or conclusions. By explicitly stating this assumption, the appraiser ensures transparency and provides stakeholders with a clear understanding of the basis on which the appraisal was made.

This disclosure is critical because it helps the client and any other users of the report evaluate the reliability of the appraisal in the context of the assumption. It enhances the integrity of the appraisal process by allowing the users to understand potential limitations or biases stemming from the assumption. Clear communication about extraordinary assumptions supports the ethical standards set forth in USPAP, promoting professionalism in the appraisal process.