What is considered a best practice for an appraiser regarding potential conflicts of interest?

Fully disclosing potential conflicts of interest to relevant parties is considered a best practice for appraisers because transparency builds trust and maintains the integrity of the appraisal process. By disclosing conflicts, the appraiser allows clients and stakeholders to understand any factors that might influence the appraisal report, ensuring that all parties are informed and that the appraisal is viewed as impartial.

This practice aligns with the ethical obligations outlined in USPAP (Uniform Standards of Professional Appraisal Practice), which emphasizes the importance of integrity, objectivity, and transparency in an appraiser's work. By adhering to this principle, appraisers fulfill their responsibility to provide trustworthy assessments and support the credibility of their profession.

While avoiding conflicts of interest entirely may be an ideal situation, it is often impractical in real-world scenarios where relationships and market dynamics exist. On the other hand, ignoring conflicts or simply documenting them without disclosure does not uphold the standards of professionalism expected in the field.