What action should an appraiser take if they lack the necessary competency for an assignment?

An appraiser should disclose to the client the lack of competency for an assignment because maintaining ethical and professional standards is crucial in the appraisal industry. When an appraiser recognizes that they do not possess the necessary skills, experience, or knowledge to competently perform the task, it is their responsibility to communicate this to the client. This transparency ensures that clients are fully informed, allowing them to make educated decisions regarding their appraisal needs.

Disclosing the lack of competency aligns with the principles of integrity and ethical practice as established in USPAP (Uniform Standards of Professional Appraisal Practice). The appraiser must always act in a manner that upholds the profession's credibility, which includes being honest about their qualifications to undertake specific assignments. This course of action also reflects a commitment to providing reliable and high-quality appraisals, which ultimately benefits the clients and the appraisal profession as a whole.

Other options, such as accepting the assignment despite the lack of competency or merely seeking guidance without informing the client, would not be in line with these ethical standards. Referring the client to another appraiser can be a sound decision, but it does not address the immediate responsibility to disclose a competency gap.